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Forex - USD/CAD near 1-week highs, but gains capped

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Investing.com - The U.S. dollar was trading near one-week highs against its Canadian counterpart on Monday, as global growth concerns continued to support safe haven demand, although disappointing U.S. data capped the greenback's gains.

USD/CAD hit 1.0226 during European afternoon trade, the pair's highest since April 5; the pair subsequently consolidated at 1.0196, gaining 0.60%.

The pair was likely to find support at 1.0134, the session low and resistance at 1.0235, the high of April 5.

The greenback remained supported after official data showed that the Chinese economy expanded by 7.7% year-on-year in the three months to March, down from 7.9% in the fourth quarter and undershooting expectations for 8.0% growth.

Separate reports showed that Chinese industrial production also came in below expectations, while retail sales rose slightly more than forecast.

The data reinforced concerns over the outlook for global growth after data on Friday showed that U.S. retail sales fell 0.4% in March, the largest decline in nine months.

However, gains were limited after data showed that the Empire State manufacturing index fell to 3.1 in April, from a reading of 9.2 the previous month, compared to expectations for a decline to 7.0.

The loonie was also lower against the euro with EUR/CAD climbing 0.47%, to hit 1.3354.

Also Monday, Eurostat said the euro zone posted a trade surplus of EUR12.0 billion in February, up from a revised surplus of EUR8.7 billion in January.

Economists had expected a surplus of EUR9.9 billion in February.

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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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