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Forex - USD/CAD eases up as U.S. outlook weighs on sentiment

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Forex Pros - The U.S. dollar edged higher against its Canadian counterpart on Thursday, easing up to a one-week high as concerns that U.S. growth is faltering curbed demand for higher yielding currencies.

USD/CAD hit 0.9800 in early U.S. trade, the pair's highest since May 26; the pair subsequently consolidated at 0.9787, easing up 0.16%.

The pair was likely to find support at 0.9666, Wednesday's low and short-term resistance at 0.9815, the high of May 26 and a two-month high.

Earlier in the day, the U.S. Labor Department said the number of people who filed for unemployment assistance in the U.S. last week fell less-than-expected, declining to a seasonally adjusted 422,000. Analysts had expected jobless claims to fall by to 420,000.

Meanwhile, data on Wednesday showing that U.S. private-sector employment growth slowed sharply in May, while manufacturing activity slumped to a one-year low reinforced expectations that the Federal Reserve will not tighten policy for some time to come and sparked speculation that the central bank may go ahead with further quantitative easing measures in the months ahead.

The loonie was also down against the euro, with EUR/CAD jumping 0.97% to hit 1.4138.

The euro gained broadly after European Central Bank President Jean-Claude Trichet said earlier that Europe should consider strengthening central control of economic policy if efforts to deal with its debt crisis do not deliver results.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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