Investing.com – The Canadian dollar rallied to a three-year high against its U.S. counterpart on Wednesday, boosted by hopes for a near-term rate hike by the Bank of Canada and higher oil prices.
USD/CAD hit 0.9585 during early U.S. trade, the pair’s lowest since mid-November 2007; the pair subsequently consolidated at 0.9592, shedding 0.46%.
The pair was likely to find support at 0.9432, the low of November 12, 2007 and resistance at 0.9692, Tuesday’s high.
The commodity linked Canadian dollar was boosted as Brent crude traded above USD122 a barrel, close to a two-and-a-half-year high, while U.S. crude was steady above USD108 a barrel, fueled by ongoing turmoil in the oil-rich Middle East and North Africa regions.
The Canadian dollar closely tracks movements in crude oil prices as Canada is a major exporter of the commodity.
Broad U.S. dollar weakness ahead of the European Central Bank’s interest rate decision on Thursday also provided strength.
Meanwhile, the loonie was fractionally higher against the euro, with EUR/CAD dipping 0.03% to hit 1.3702.
Later in the day, Canada was to publish a report on manufacturing growth, compiled by the Richard Ivey School of Business.
USD/CAD hit 0.9585 during early U.S. trade, the pair’s lowest since mid-November 2007; the pair subsequently consolidated at 0.9592, shedding 0.46%.
The pair was likely to find support at 0.9432, the low of November 12, 2007 and resistance at 0.9692, Tuesday’s high.
The commodity linked Canadian dollar was boosted as Brent crude traded above USD122 a barrel, close to a two-and-a-half-year high, while U.S. crude was steady above USD108 a barrel, fueled by ongoing turmoil in the oil-rich Middle East and North Africa regions.
The Canadian dollar closely tracks movements in crude oil prices as Canada is a major exporter of the commodity.
Broad U.S. dollar weakness ahead of the European Central Bank’s interest rate decision on Thursday also provided strength.
Meanwhile, the loonie was fractionally higher against the euro, with EUR/CAD dipping 0.03% to hit 1.3702.
Later in the day, Canada was to publish a report on manufacturing growth, compiled by the Richard Ivey School of Business.