Thursday, January 10, 2013

Forex - USD/CAD lower despite weak Canadian data - The U.S. dollar was trading close to session lows against the Canadian dollar on Thursday despite official data showing that number of new building permits issued in Canada dropped sharply in November, erasing the previous month’s gains.

USD/CAD hit 0.9850 during early U.S. trade, the pair’s lowest since Tuesday; the pair subsequently consolidated at 0.9858, slipping 0.17%.

The pair was likely to find support at 0.9835, the low of January 2 and resistance at 0.9879, the session high.

Statistic Canada said the number of new building permits issued tumbled 17.9% in November, compared to expectations for a decline of 8%. October’s figure was revised to a 15.9% gain from a previously reported increase of 15%.  

Risk appetite was boosted after the head of the European Central Bank said a vote to leave interest rates in the euro zone unchanged this month was unanimous, following the bank’s policy meeting.

ECB President Mario Draghi also said a gradual economic recovery would begin this year, as structural reforms and actions by the ECB to tackle the region’s debt crisis continued to take effect.

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