We have updated our privacy policy and terms & conditions. Find out more here.
0
 

Forex - USD/CAD falls on Fed uncertainty, strong Canada retail sales

By Investing.com  |  Forex  |  Jul 23, 2013 07:11PM GMT  |   Add a Comment
 
AA
+
-
Forexpros - The U.S. dollar weakened against its Canadian counterpart on Tuesday after retail sales came in stronger than expected in Canada, while soft housing data in the U.S. frayed nerves that the Federal Reserve will keep monetary stimulus programs in place for longer than once thought.

Forex - USD/CAD falls on Fed uncertainty, strong Canada retail sales
In U.S. trading on Monday, USD/CAD hit 1.0283, down 0.48%, up from a low of 1.0280 and off a high of 1.0350.

The pair sought to test support at 1.0174, the low from June 19, and resistance at 1.0350, the earlier high.

The U.S. National Association of Realtors reported on Monday that existing home sales fell 1.2% to 5.08 million units in June, missing market calls for sales to rise 0.6% to 5.25 million units in June.

Sales for May were revised down to 5.14 million from a previously reported 5.18 million.

The report added sales were up 15.2% from June of last year, while average house prices jumped 13.5% on a year-over-year basis.

While the numbers indicated that recovery continues in the housing sector, markets concluded the figures were soft enough to sway monetary authorities to keep stimulus programs in place for now, sentiments that carried over into a quiet session on Tuesday.

Stimulus programs such as the Fed's monthly USD85 billion in asset purchases, among others, tend to keep the dollar weaker to spur recovery by pushing borrowing costs lower across the broader economy.

Meanwhile, Statistics Canada said earlier Tuesday that June retail sales jumped 1.9% from a month earlier in May, well above expectations for a 0.4% gain, while core retail sales rose 1.2%, compared to expectations for a 0.1% increase, which sent the loonie firming against the greenback.

The Canadian dollar, meanwhile, was up against the euro and up against the yen, with EUR/CAD down 0.18% and trading at 1.3603 and CAD/JPY up 0.26% at 96.69.

On Wednesday, the U.S. is to release official data on new home sales, a leading indicator of economic health.








Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Add a Comment

 

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

CAD/JPY
 
 
 
Are you sure you want to delete this chart?
 
 
 
Are you sure you want to delete this chart?
 
 
 

Successfully Reported

Thank you. This comment has been flagged for a moderator.
_touchLoadingMsg