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Forex - USD/CAD pares losses after U.S., Canadian data

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Investing.com -

Investing.com - The U.S. dollar pared losses against its Canadian counterpart on Tuesday, re-approaching a recent 11-1/2 year peak as upbeat U.S. data supported demand for the greenback, while a disappointing report from Canada weighed on the local currency.

USD/CAD eased off 1.3674, the pair's lowest since December 11, to hit 1.3719 during early U.S. trade, still down 0.08%.

The pair was likely to find support at 1.3618, the low of December 11 and resistance at 1.3745, Monday's high and an 11-1/2 year peak.

The U.S. Commerce Department reported that consumer prices were unchanged from a month earlier, meeting expectations and following a gain of 0.2% in October.

Year-over-year, consumer prices were 0.5% higher from the same month a year earlier, compared to expectations for a 0.4% increase and after rising 0.2% in October.

Core CPI, which excludes food and energy costs, increased by 0.2%, meeting expectations.

Separately, the Federal Reserve Bank of New York said that its general business conditions index improved to -4.6 this month from a reading of -10.7 in November. Analysts had expected the index to rise to -6.0 in December.

Market participants awaited the Federal Reserve's highly-anticipated policy decision due on Wednesday. Most investors expect the Fed to raise interest rates for the first time since June 2006.

In Canada, data showed that manufacturing sales dropped 1.1% in October, compared to expectations for a 0.5% fall, after a 1.5% decline the previous month.

The loonie was higher against the euro, with EUR/CAD sliding 0.27% to 1.5039.

Earlier Tuesday, the ZEW Centre for Economic Research said that its index of German economic sentiment rose by 5.7 points to 16.1 this month from November's reading of 10.4. Analysts had expected the index to rise by 4.6 points to 15.0 in December.

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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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