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Forex - USD/CAD hovers near 13-year highs on oil rout

Published 01/15/2016, 09:26 AM
Greenback strengthens further vs. loonie despite U.S. data
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Investing.com - The U.S. dollar remained close to nearly 13-year highs against its Canadian counterpart on Friday, despite weak U.S. data as the ongoing rout in oil prices continued to weigh heavily on the commodity-related Canadian currency.

USD/CAD hit 1.4546 during early U.S. trade, the pair’s highest since April 2003; the pair subsequently consolidated at 1.4466, advancing 0.70%.

The pair was likely to find support at 1.4330, Thursday’s low and resistance at 1.4946.

The U.S. Census Bureau reported on Friday that retail sales fell 0.1% in December, compared to expectations for a 0.1% rise. Retail sales increased by 0.4% in November, whose figure was revised from a previously estimated 0.2% gain.

Core retail sales, which exclude automobiles, slipped 0.1% last month, disappointing expectations for a 0.2% gain.

A separate report showed that the U.S. producer price index slipped 0.2% in December, in line with expectations. Core PPI, which excludes food and energy, inched up 0.1% last month, in line with expectations.

In addition, the Federal Reserve of New York said its Empire State manufacturing index deteriorated to minus 19.37 this month from minus 6.21 in December, whose figure was revised from a previously estimated reading of minus 4.59.

Analysts had expected the index to improve to minus 4.00 in January.

But the Canadian dollar remained under broad selling pressure as Brent crude, the global benchmark, fell below the $30 per barrel threshold on Friday, the lowest level since 2004, pressured by concerns over a global supply glut.

The loonie was sharply lower against the euro, with EUR/CAD rallying 1.60% to 1.5857.

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