The USD fell to session lows against the Canadian dollar on Thursday after better-than-forecast Canadian trade data. USD/CAD hit 1.0290 during early US trade, the session low; the pair subsequently consolidated at 1.0292, shedding 0.27%. The pair was likely to find support at 1.0254, Wednesday’s low and resistance at 1.0335, Wednesday’s high. Statistics Canada said the trade deficit narrowed to CAD0.2 billion in January from a deficit of CAD0.3 billion the previous month. Analysts had expected a deficit of CAD1 billion. Exports rose to CAD39.1 billion, as prices increased 1.3% and volumes were up 0.9%, while imports increased to CAD39.3 billion, almost entirely the result of higher volumes. Report showed that the number of new building permits issued in Canada rose by a seasonally adjusted 1.7% in January, well below expectations for a 5% increase. The loonie, as the Canadian dollar is also known was lower against the euro, with EUR/CAD rising 0.62% to 1.3469. The euro strengthened broadly after European Central Bank Mario Draghi said monetary policy will remain firmly accommodative after the bank left interest rates unchanged at 0.75% following its policy meeting earlier.
EasyForexNews Research Team