USD and CAD Updates

The US dollar went up to a six-year high versus the Canadian currency as market sentiment deteriorated after unsatisfactory data on the US economy and the increase of unemployment rates in Canada last month.

USD and CAD pair reached 1.2816 during early trading in US markets which is the highest since March of 2009. It then consolidated at 1.2783 and advanced 0.77 percent.

The pair would probably get support at 1.2617 which is the low last Thursday and resistance at 1.3063. Meanwhile, the US labor department revealed producer prices dropped 0.5 percent last month, leading to more expectations of a 0.3 percent gain after the 0.8 percent drop in January.

Main producer prices excluding food, trade and energy also decreased 0.5 percent in February as against assumptions of a 0.1 percent growth.

On the other hand, Statistics Canada made public that employment figures went down by 1,000 last month versus projections of a 5,000 decline. This came after a rise of 35,400 in January.

The report also disclosed Canada's unemployment numbers went up 6.8 percent last month from 6.6 percent in January The Canadian currency was higher versus the EU euro with EUR and CAD slipping 0.20 percent to 1.3467.