CAD Loses Ground Awaits US NFP

The Canadian dollar lost ground against other major currencies ahead of the European session on Friday amid risk aversion, as investors focus on US reports of personal income and spending, manufacturing activity and construction spending along with the all-important jobs report later in the day for clues whether the Federal Reserve will have to raise interest rates sooner than expected.

The Canadian dollar fell to nearly a 2-month low of 1.0904 against the US dollar, from an early high of 1.0900. If the loonie extends its downtrend, it is likely to find support around the 1.094 area.

Against the yen, the loonie dropped to a 2-day low of 94.07 from an early high of 94.31. The loonie may test support near the 93.88 area.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza