The pair hit 1.0280 during early U.S. trade, the pair’s highest since Tuesday; the pair subsequently consolidated at 1.0276, gaining 0.45%. The pair was likely to find support at 1.0215, the session low and resistance at 1.0302, Tuesday’s high and an eight month high. U.S. gross domestic product was revised up to 0.1% from the three months to December, from an initial estimate for a 0.1% contraction, but came in below expectations for 0.5% growth. Separately, the Department of Labor said jobless claims dropped 22,000 last week to a seasonally adjusted 344,000, compared to expectations for a decline of 6,000 to 360,000. In Canada, official data showed that the raw material price Index rose 3.8% in January, erasing the previous months 2.0% decline, while the industrial product price index remained flat. Another report showed that Canada’s current account deficit narrowed to CAD17.3 billion in the fourth quarter, from CAD18 billion in the three months to September. Meanwhile, concerns that a political deadlock in Italy could destabilize sovereign debt markets in the euro zone eased after an auction of Italian bonds on Wednesday went smoothly. However, investors remained cautious amid fears that Italy would not be able to continue to implement economic reforms following inconclusive election results. The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.28% to 1.3475.
EasyForexNews Research Team