USD/CAD slid after US data

On Thursday after reaching session high against the Canadian dollar, US dollar lost ground after the release of disappointing economic data from United States.

USD/CAD pair hit 1.0390, highest value for current session, but later recorded a drop to 1.0320 during early American trade. Support was likely to be received at 1.0305, lowest value from May 27th, while resistance was expected at todays session high, 1.0390.

US Department of Labor reported earlier, that Initial Jobless Claims rose to 354 000 during last week, opposing expectations that claims could drop to 340 000.

US Gross Domestic Product during Q1 recorded a slowed down increase to 2.4% annually, as during the preceding period it registered a 2.5% rise.

However, Personal Consumption Expenditures in United States showed certain improvement, as the indicator rose by 3.4% during Q1 on annual basis, surpassing both the projected and the previous period change.

Another expected indicator, which came out earlier, was the Pending Home Sales in United States, as it showed a mere 0.3% increase during April on a monthly basis, far below the predicted 1.5% rise. Fewer Americans signed  existing home purchasing contracts during April, compared to March, which cast additional shadow upon economic recovery. Demand for existing homes was obstructed by homes-for-sale shortage, but rising prices began urging more Americans to sell. According to experts, if increasing home prices cause more sellers to appear, this new wave of supply could be favorable to potential sales.

Additionally, Canadas Current Account recorded smallest deficit for the past year. During Q1 deficit diminished to 14.09 billion CAD, surprisingly to estimates, which showed that deficit would expand to 15.70 billion CAD. Revised data during the preceding period stated a deficit of 14.63 billion CAD. This gave Canadian dollar an additional upward impulse.