Forex - USD/CAD eases off 5-day low after U.S. trade data

Forex Pros – The U.S. dollar pared losses against its Canadian counterpart on Wednesday, pulling back from a five-day low after U.S. government data showed the trade deficit widened more-than-expected in March.

USD/CAD clawed back up from 0.9514, the pair’s lowest since May 4, to hit 0.9550 during early U.S. trade, still down 0.17% on the day.

The pair was likely to find support at 0.9457, the low of May 3 and resistance at 0.9652, Tuesday’s high.

Earlier in the day, the Commerce Department said the deficit rose to USD48.2 billion, the widest since June 2010, from a slightly downwardly revised USD45.4 billion in February.

Economists had expected the trade deficit to widen to USD47.0 billion in March.

The report said U.S. exports grew 4.6% in March, in the biggest month-to-month gain since March 1994. Imports grew 4.9%, the highest since September 2008.

The loonie was also higher against the euro, with EUR/CAD tumbling 0.89% to hit 1.3663.

Also Wednesday, a government report showed that Canada's trade surplus made a small rebound in March after two months of decline, as broad gains in exports outstripped higher imports.

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