FXstreet.com (Barcelona) - The USD/CAD has fallen more than 80 pips after worse then expected US housing data from the 1.2620 to the 1.2530, breaking the 1.2585 support and daily key point.
A long the day, the USD/CAD was trading between the 1.2650 and 1.2585 range. Currently, the pair is moving around the 1.2540/60 after a quick pullback to the key point. If the downtrend is confirmed, the EUR/USD will go down to the 1.2500 field.
According to Kathy Lien, Director of currency research at GFT: The housing data was worse than the market expected but not hardly surprising given fears about job security and the difficulty of attaining mortgages. Banks now have very stringent rules about who they lend to and even if the borrower has enough down payment, the building itself may need to have a certain level of occupancy. These onerous terms only exacerbates the problems in the housing market and prevents a recovery.