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Forex - Greenback rises against loonie in thin trade

Published 11/27/2015, 09:28 AM
© Reuters.  Dollar gains ground vs. loonie, re-approaches 2-month highs
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Investing.com - The U.S. dollar rose against its Canadian counterpart on Friday, as demand for the greenback remained broadly supported by U.S. rate hike hopes in thin trading volumes due to the long Thanksgiving weekend.

USD/CAD hit 1.3368 during early U.S. trade, the pair's highest since November 24; the pair subsequently consolidated at 1.3365, advancing 0.54%.

The pair was likely to find support at 1.3242, the low of November 19 and resistance at 1.3437, the high of November 23 and a two-month high.

The greenback remained broadly supported after a string of upbeat U.S. data released over the week added to expectations that the Federal Reserve will raise interest rates next month.

In Canada, data on Friday showed that raw materials prices ticked up 0.4% in October after an increase of 2.4% in September, whose figure was revised from a previously estimated 3.0% gain.

But the commodity-linked Canadian dollar was hit by declining oil prices, as crude oil futures for January delivery were down 2.09% at $42.14 at the open of U.S. trading.

The loonie was lower against the euro, with EUR/CAD edging up 0.17% to 1.4133.

The euro's gains were capped however since European Central Bank President Mario Draghi signaled last week that the bank is ready to act quickly to boost inflation in the euro zone and can also change the level of its deposit rate to boost the impact of quantitative easing.

Earlier Friday, preliminary data showed that Spanish consumer prices rose 0.3% this month, beating expectations for a 0.2% uptick and after an increase of 0.6% in October.

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