Monday, January 7, 2013

Forex - USD/CAD little changed in quiet trade - The U.S. dollar was almost unchanged against the Canadian dollar on Monday, amid caution over the outlook for U.S. budget negotiations and speculation that the Federal Reserve may end its quantitative easing program before the end of the year.

USD/CAD hit 0.9860 during early U.S. trade, the session low; the pair subsequently consolidated at 0.9868, dipping 0.05%.

The pair was likely to find support at 0.9835, the low of January 2 and near-term resistance at 0.9883, the session high.

Demand for the greenback continued to be underpinned after Thursday’s minutes from the Fed’s December meeting showed that some policymakers considered an earlier-than-expected end to the bank’s quantitative easing program.

However official data on Friday showed the U.S. economy added 155,000 jobs in December, easing from an upwardly revised increase of 161,000 in November, fanning concerns that the pace of the recovery in the U.S. labor market is moderating.

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