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Forex - USD/CAD hits 7-week high as weak U.S. data saps risk

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Forex Pros - The U.S. dollar rose to a fresh seven-week high against its Canadian counterpart on Tuesday, after a string of worse-than-expected U.S. data sapped investor's appetite for riskier assets.

USD/CAD hit 0.9780 during early U.S. trade, the pair's highest since March 29; the pair subsequently consolidated at 0.9774, gaining 0.17%.

The pair was likely to find support at 0.9682, Monday's low and resistance at 0.9822, the high of March 29.

The Commerce Department said construction of homes and apartments declined 10.6% in April from a month earlier to a seasonally adjusted annual rate of 0.52 million. March's figures were revised upward to an annual rate of 0.58 million. Economists had expected housing starts to decline to 0.57 million in April.

The report said the number of building permits issued in April fell by 4% to a seasonally adjusted 0.55 million, from a downwardly revised 0.57 million in March. Economists had expected building permits to rise 0.9% to 0.59 million in April.

A separate report showed that industrial production in the U.S. was unexpectedly flat last month after rising by a revised 0.7% in March.

The loonie was almost unchanged against the euro, with EUR/CAD easing up 0.01% to hit 1.3819.

Also Tuesday, Statistics Canada data showed foreigners resumed purchases of Canadian bonds in March.

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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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