USD/CAD: Canadian building permits tumbled to its lowest level since March 2016 in November


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD rose 0.7% against the CAD and closed at 1.2549.

The Canadian Dollar plunged against the USD, following media reports that the US President, Donald Trump, would withdraw the United States from the North American Free Trade Agreement (NAFTA).

On the macro front, Canada’s building permits declined more-than-expected by 7.7% on a monthly basis in November, hitting its lowest level in 18 months. In the previous month, building permits had recorded a revised rise of 4.4%, while investors had envisaged for a fall of 1.0%.

In the Asian session, at GMT0400, the pair is trading at 1.2548, with the USD trading slightly lower against the USD from yesterday’s close.

The pair is expected to find support at 1.2456, and a fall through could take it to the next support level of 1.2365. The pair is expected to find its first resistance at 1.2611, and a rise through could take it to the next resistance level of 1.2675.

Ahead in the day, market participants would focus on Canada’s new house price index for November.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

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