US dollar continued trading on positive territory against its Canadian peer on Wednesday, despite disappointing pending home sales report out of the United States, as prospects of a possible military strike by the US against Syria were still underpining demand for safe haven assets.
USD/CAD climbed to a session high at 1.0512 during the early phase of US trade, after which consolidation followed at 1.0488, still up by 0.13% for the day. Support was expected at August 21st low, 1.0396, while resistance was to be encountered at August 27th high, 1.0540.
Indications were growing that the United States and its allies were in preparation of a military campaign against Syria, after the alleged usage of chemical weapons. British Prime Minister David Cameron drafted a United Nations resolution, condemning this act by Syria and “authorizing necessary measures to protect civilians” today. The resolution was expected to be put forward at the meeting of the UN Security Council, scheduled later on Wednesday.
Meanwhile, earlier today it became clear that pending home sales in the United States decreased unexpectedly for the second month in a row in July, as this might suggest that rising mortgage rates could have begun to influence negatively housing market recovery. NAR reported that the index, gauging pending home sales, dropped by 1.3% in July compared to June, reaching a value of 109.5. Experts had projected that the indicator will remain flat in July. It dropped 0.4% in June, while rising by 6.7% during July 2013 compared to July 2012.
Elsewhere, the loonie, as Canadian currency is also known, was trading higher against the euro, with EUR/CAD pair shedding 0.49% to 1.3962 at 14:45 GMT.
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