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Forex - Greenback rises against loonie in early trade

Published 03/23/2016, 09:27 AM
© Reuters.  Greenback gains ground vs. loonie on Fed remarks, lower oil prices
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Investing.com - The U.S. dollar rose against its Canadian counterpart on Wednesday, as hawkish comments by several Federal Reserve members boosted the greenabck, while declining oil prices weighed on demand for the commodity-related Canadian currency.

USD/CAD hit 1.3109 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3139, advancing 0.70%.

The pair was likely to find support at 1.2992, the low of March 21 and resistance at 1.3308, the high of March 14.

The greenback found support after Philadelphia Fed President Patrick Harker said late Tuesday that the U.S. central bank should raise interest rates as early as next month if the U.S. economy continues to improve.

Chicago Fed President Charles Evans said he expects two more rate hikes before the years end, if the economy remains on track.

The comments came a day after Atlanta Federal Reserve President Dennis Lockhart signaled that the Fed could hike interest rates in April.

Meanwhile, the Canadian dollar weakened as oil prices moved back lower as global glut concerns continued to weigh.

Separately, investors remained cautious after three explosions in Brussels killed 34 people and injured hundreds on Tuesday.

Global terrorist organization ISIS claimed responsibility for the attacks that took place in the city's airport and a metro station.

The loonie was lower against the euro, with EUR/CAD gaining 0.44% to 1.4699.

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