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Forex - USD/CAD trims gains after Canadian wholesales data

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Investing.com -

Investing.com - The U.S. dollar trimmed back gains against the Canadian dollar on Wednesday after official data showed that Canadian wholesale sales were higher for a consecutive third month in June.

USD/CAD was flat at 1.0942, off session highs of 1.0938.

The pair was likely to find support at around 1.0920 and resistance at about the 1.0985 level.

The Canadian dollar firmed up after Statistics Canada reported that wholesale sales rose 0.6% to C$53.0 billion in June. Economists had forecast an increase of 1.3%.

Wholesale sales for May were revised up to 2.3% from a previously reported gain of 2.2%.

Demand for the greenback continued to be underpinned after recent reports indicated that the economic recovery is on track.

Data on Tuesday showed that U.S. housing starts jumped 15.7% in July, while the number of new permits granted to home-builders also accelerated.

The data pointed to underlying strength in the housing sector, which stalled in the second half of last year.

The data offset a report showing that U.S. consumer prices rose just 0.1% in July.

Investors were looking ahead to the minutes of the Fed's latest meeting due for release later Wednesday for further indications on the future direction of monetary policy.

Market watchers were also awaiting a speech by Fed Chair Janet Yellen in Jackson Hole on Friday.

Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the broadly weaker euro, with EUR/CAD down 0.22% to 1.4543.

The single currency remained under pressure after recent weak data on euro zone second quarter growth highlighted the divergence in monetary policy between the European Central Bank and its major peers.

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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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