USD/CAD climbs as global growth fears offset BoC survey

ForexNewsNow | Published on July 12, 2010 at 12:35 pm

NEW YORK (Forex News Now) – The Canadian dollar slid against its U.S. counterpart on Monday, as fears over the global economic growth outlook offset an upbeat Bank of Canada survey of business activity and sentiment.

In late U.S. currency trading, USD/CAD traded at 1.037, up 0.33 percent on the day, after pulling back from Friday’s 12-day low of 1.0296.

The Bank of Canada’s quarterly Business Outlook Survey showed earlier that firms reported for the first time in two years that past sales activity had improved.

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In a statement, the BoC said: “Overall, businesses are generally positive about their near-term sales prospects, although they are concerned about recent global economic and financial uncertainties and possible spillover effects in Canada.”

According to forex analysis, USD/CAD is likely to touch immediate support around the low of June  29, 1.0342, and encounter resistance around Friday’s high, 1.0454.

Also Monday, data showed that Chinese imports slipped from a yearly growth rate of 48.3% in May to 34.1% in June, rekindling fears over the strength of the global economic recovery.

Meanwhile, the loonie climbed versus the euro: EUR/CAD traded at 1.0358, down 0.06 percent on the day.

 

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