NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Forex - USD/CAD re-approaches 5-year peak after U.S., Canadian data

Published 12/23/2014, 09:28 AM
Greenback nears multi-year highs vs. loonie, U.S. GDP supports
USD/CAD
-
EUR/CAD
-

Investing.com - The U.S. dollar rose against its Canadian counterpart on Tuesday, re-approaching the previous week's five-year high as strong U.S. third quarter economic growth data sent the greenback broadly higher.

Trading volumes were expected to remain light this week with many investors away for the Christmas holiday and ahead of the New Year's holiday.

USD/CAD hit 1.1657 during early U.S. trade, the pair's highest since December 17; the pair subsequently consolidated at 1.1666, gaining 0.26%.

The pair was likely to find support at 1.1575, Monday's low and resistance at 1.1676, the high of December 16 and a five-year peak.

Final data showed that U.S. gross domestic product rose 5.0% in the third quarter, exceeding expectations for a growth rate of 4.3% and up from 3.9% in the three months to June.

A separate report showed that U.S. durable goods orders slipped 0.7% last month, confounding expectations for a 3.0% increase, after a 0.3% rise in October.

Core durable goods orders, which exclude transportation items, fell 0.4% in November after a 1.0% decline in October, whose figure was revised from a previously estimated 1.1% drop.

Analysts had expected core durable goods orders to gain 1.1% last month.

The greenback also remained broadly supported after the Federal Reserve signaled last week that it was on track to raise interest rates next year but said it was taking a patient stance.

In Canada, official data showed that the economy grew at a 0.3% rate in October, beating expectations for a growth rate of 0.1% and down from 0.4% in September.

The loonie was higher against the euro, with EUR/CAD slipping 0.12% to 1.4210.

Later in the day, the U.S. was to release data on consumer sentiment and new home sales.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.