USDCAD erases its losses

Canadian dollar

Today, the U.S. dollar rebounded from market bottoms against its Canadian fellow, after the official data announced that the Canadian economy unexpectedly contracted in August.
The currency pair USDCAD moved away from the level 0.9961, which was the bottom fro the pair since October 26, and headed towards 1.0006 during the early American trade.

The pair was supposed to find support at 0.9959, which is the bottom of the session, and resistance at 1.0075, the peak from August 3.

Canadian statistics declared thet gross domestic product contracted by 0.1% in August, did not answer to the expectations for growth of 0.2%.

The report showed that the first contraction since February was due to declines in goods production, with manufacturing as well as mining, oil and gas extraction activity much weaker than expected.

The Canadian economy is continuously expanding, In August by 1.2%, without confirming the expectations for growth of 1.7%.

Market investors are expecting data on manufacturing activity in Chicago, as well as a U.S. government report on crude oil inventories later in the session.

The Canadian dollar was lower against the euro, with EURCAD reaching the level of 1.2994.

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