EUR/USD went down and USD/CAD got higher on positive American statistics

16.10.2015

On Friday, euro rose against the US dollar, as positive US statistical data added optimism about the US economy, providing substantial support to the dollar.

During the American session, EUR/USD reached 1.1335, the lowest level since October 9, the pair subsequently consolidated at 1.1365, shedding 0.19%.

The pair is likely to find support at 1.1265, the low of October 9 and resistance at 1.1489, the high of October 14 and at six weeks maximum.

The preliminary report of the University of Michigan said that consumer confidence index rose to 92.1 this month from 87.2 in September. Analysts had expected the index to increase to 89.0 in October.

In the US, a separate report showed that industrial production fell 0.2% last month, matching forecasts. Industrial production fell 0.1% in August, the figure being revised up from the previously forecast about a 0.4% fall.

The data also showed that manufacturing production fell 0.1% in September, less than the expected fall of 0.2%. Production fell 0.4% in August, the figure being revised up from the previously forecast which was 0.5%.

The euro fell slightly against the pound; EUR/GBP pair fell 0.08% to 0.7356.

Also on Friday, Eurostat said that Eurozone consumer price index rose 0.2%, in line with forecasts, compared with the initial estimate of zero growth.

On Friday, the US dollar went up against its Canadian rival, retreating from a three-month low after the release of more positive than expected economic reports in Canada and the United States.

At the beginning of the US trading session, the USD/CAD pair reached 1.2931, the session high; the pair subsequently consolidated at 1.2905, rising 0.37%.

The pair is likely to receive support at 1.2719, the low of July 15, and resistance at 1.3039, Wednesday's high.

On Friday, Statistics Canada reported that the volume of manufacturing shipments fell 0.2% in August, while there was expected a decline of 1.0%, after rising 1.7% the previous month.

A separate report showed that purchases of Canadian securities by foreign investors increased by 3.11 billion Canadian dollars in August, after falling to 10.09 billion Canadian dollars in July, the figure being revised up from the previously projected 10.12 billion Canadian dollars.

Analysts had expected that in August, the volume of transactions with foreign securities would increase by 2.21 billion Canadian dollars.

Back Next suggested article