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Forex - USD/CAD edges up near 1-month highs in early trade

Published 11/16/2015, 09:28 AM
© Reuters.  Greenback gains ground vs. loonie after U.S., Canada data
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Investing.com - The U.S. dollar edged up near one-month highs against its Canadian counterpart on Monday, as expectations for a U.S. rate hike next month continued to support, while downbeat Canadian data weighed on the local currency.

USD/CAD hit 1.3350 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3352, adding 0.24%.

The pair was likely to find support at 1.3152, the low of November 6 and resistance at 1.3432, the high of September 30.

Markets shrugged off a report by the Federal Reserve Bank of New York saying that its general business conditions index improved to -10.7 this month from a reading of -11.4 in October. Analysts had expected the index to rise to -6.0 in November.

The greenback remained broadly supported after Fed Vice-Chair Stanly Fischer said Thursday that it "may be appropriate" for the Fed to begin raising rates next month.

In addition, demand for safe haven assets was boosted after attackers killed more than 130 people in Paris on Friday, prompting retaliatory French air strikes against Islamic State in Syria.

In Canada, data showed that manufacturing sales declined by 1.5% in September, compared to expectations for a 0.1% uptick. Manufacturing sales slipped 0.6% in August, whose figure was revised from a previously estimated 0.2% dip.

The loonie was higher against the euro, with EUR/CAD shedding 0.26% to 1.4316.

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