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Canadian dollar Falls for Second Straight Day

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Canadian dollar Falls for Second Straight Day

The Canadian dollar was weaker Friday following a series of gains in the early part of the week.

Strong Canadian fundamentals helped boost the loonie over the past two weeks. A brighter business outlook, combined with solid GDP and employment numbers, pushed the loonie to higher ground. The jobs report showing Canadian employers added nearly 43,000 jobs in March helped push the loonie above 91 US cents for the first time since mid-February.

The Canadian calendar will continue to be active next week. Statistics Canada will report on manufacturing shipments and consumer price inflation. The Bank of Canada will hold an interest rate meeting and release a monetary policy report.

As of Friday’s early North American session, the Canadian dollar was trading at 0.9118 US, down 0.3 percent. The loonie rebounded from a session low of 0.9105 and is still on pace for a narrow weekly gain of 0.1 percent.

The USDCAD currency pair was at 1.0964, up nearly 0.3 percent. The 4-hour chart shows initial support at 1.0902. On the upside, technical resistance is likely found at 1.0971.

In the United States, producer inflation rose at a faster pace than forecast. The producer price index rose 0.5 percent in March and 1.4 percent from a year ago, the Commerce Department reported today in Washington. A broad consensus of market analysts forecast a monthly gain of 0.1 percent and an annualized rate of 1.1 percent.

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