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Forex - USD/CAD near 6-month peak, U.S. GDP supports

Published 09/26/2014, 09:25 AM
Greenback rises vs. loonie after U.S. data, UoM report ahead
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Investing.com - The U.S. dollar was trading near a six-month peak against its Canadian counterpart on Friday, supported by the release of positive U.S. economic growth data, while markets still eyed an upcoming report on U.S. consumer sentiment.

USD/CAD hit 1.1133 during early U.S. trade, the pair's highest since March; the pair subsequently consolidated at 1.1116, adding 0.07%

The pair was likely to find support at 1.1052, Thursday's low and resistance at 1.1278.

The greenback strengthened further after the Bureau of Economic Analysis said U.S. gross domestic product expanded at an annual rate of 4.6% in the second quarter, in line with the consensus forecast, after contracting by 2.1% in the first three months of the year.

U.S. second quarter GDP was initially reported to have increased by 4.2%.

The positive data added to expectations for an early U.S. rate hike, after Dallas Federal Reserve President Richard Fisher said that the U.S. central bank may start raising interest rates around the spring of 2015.

The loonie was higher against the euro, with EUR/CAD slipping 0.16% to 1.4141.

Sentiment on the euro remained vulnerable after data earlier showed that the Gfk German consumer climate index ticked down to 8.3 this month, from a reading of 8.6 in August. Analysts had expected the index to slip to 8.5.

The report added to concerns over the outlook for growth in the euro zone's biggest economy as data on Wednesday showed that Germany's Ifo business confidence index deteriorated for the fifth successive month in September.

The single currency was hit on Thursday after European Central Bank President Mario Draghi reiterated the bank's commitment to act with more policy measures to boost inflation in the euro zone.

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