Forex - USD/CAD hovers near 7-month peak amid declining oil prices

Published 11/10/2016, 09:29 AM
Greenback higher vs. loonie on U.S. data, lower oil prices
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Investing.com - The U.S. dollar was hovering near seven-month highs against its Canadian counterpart on Thursday, as upbeat data and easing concerns over Donald Trump’s electoral win lent support to the greenback, while lower oil prices weighed on the Canadian currency.

USD/CAD hit 1.3498 during early U.S. trade, the session high; the pair subsequenrtly consolidated at 1.3485, climbing 0.46%.

The pair was likely to find support at 1.3308, the low of November 7 and resistance at 1.3525, Wednesday’s high and a seven-month high.

The U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending November 5 decreased by 11,000 to 254,000 from the previous week’s total of 265,000.

Analysts had expected jobless claims to drop by 5,000 to 260,000 last week.

The dollar also regained some strength as investors began to think that a Trump presidency may not be as bad for financial markets as initially expected.

Donald Trump was declared the 45th U.S. President on Wednesday, confounding expectations for a Democratic victory.

Meanwhile, the commodity-related Canadian dollar weakened as oil prices moved lower on Thursday, after the International Energy Agency warned that the market risks running another surplus in 2017 without an output cut from OPEC.

The loonie was lower against the euro, with EUR/CAD rising 0.27% to 1.4683.

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