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Forex - USD/CAD jumps to 3-week high after BoJ move

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Forexpros - The U.S. dollar was up for a fifth day against its Canadian counterpart on Thursday, jumping to a three-week high after Japan intervened to weaken the yen, while ongoing concerns over the global economic outlook curbed demand for growth-linked currencies.

USD/CAD hit 0.9745 during U.S. morning trade, the pair's highest since July 12; the pair subsequently consolidated at 0.9705, gaining 0.87%.

The pair was likely to find support at 0.9567, Wednesday's low and resistance at 0.9778, the high of July 12.

The U.S. dollar rose sharply against all of its major counterparts earlier after Japanese Finance Minister Yoshihiko Noda confirmed that the government intervened in currency markets for the first time since March to curb the yen's recent sharp gains.

In addition, the Bank of Japan announced additional monetary easing in order to support the Finance Ministry's intervention to weaken the yen.

Meanwhile, the U.S. Department of Labor said earlier that the number of individuals filing for initial jobless benefits in the week ending July 29 fell by 1,000 to a seasonally adjusted 400,000, confounding expectations for an increase to 406,000.

However, the previous week's figure was revised up to 401,000 from 398,000.

The loonie was also weighed after crude oil for delivery in September fell 1.2% to trade at a five-week low of USD90.89 a barrel on the New York Mercantile Exchange.

Raw materials, including oil account for about half of Canada's export revenue.

Elsewhere, the Canadian dollar was up against the euro, with EUR/CAD shedding 0.16% to hit 1.3759.

On Friday, Canada was to release a government report on employment change and the unemployment rate, as well as official data on building permits.

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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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