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Forex - USD/CAD rises, hovers close to 2-week highs

Published 12/16/2016, 09:30 AM
© Reuters.  Greenback higher vs. loonie, Fed move still supports
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar rose against its Canadian counterpart on Friday, just off the previous session’s two-week highs as the Federal Reserve’s recent rate hike continued to support the greenaback.

USD/CAD hit 1.3384 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3384, gaining 0.35%.

The pair was likely to find support at 1.3265, Thursday’s low and resistance at 1.3418, Thursday’s high and a two-week peak.

The greenback found broad support after the Fed concluded its policy meeting on Wednesday by raising interest rates by 25 basis points and projected three more rate hikes for 2017.

It was the Fed’s first rate hike since December 2015.

The U.S. Commerce Department said on Friday that housing starts tumbled 18.7% to hit 1.090 million units last month from October’s total of 1.340 million units, an upward revision from the initial 1.323 million.

Analysts had expected November’s reading to fall to only 1.230 million units.

Meanwhile, U.S. building permits dropped 4.7% to 1.201 million units last month from 1.260 million in October. Economists had forecast the units to fall to 1.240 million units in November.

In Canada, official data showed that foreign securities purchases increased by C$15.75 billion in October, beating expectations for a $12.35 billion rise.

Foreign securities purchases rose $11.79 billion in September, whose figure was revised from a previously estimated increase of $11.77 billion.

The loonie was lower against the euro, with EUR/CAD climbing 0.45% at 1.3951.

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