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Forex - USD/CAD Edges Higher as Oil Prices Slide

Published 12/14/2017, 09:28 AM
Greenback gains ground vs. loonie but upside seen limited
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Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Thursday, even after the Federal Reserve's latest policy statement sent the greenback broadly lower, as declining oil prices dented demand for the commodity-related Canadian currency.

USD/CAD was up 0.20% at 1.2842 by 09:30 a.m. ET (13:30 GMT).

Data on Thursday showed that U.S. retail sales rose for the third-straight month in November, while a separate report showed that U.S. initial jobless claims fell unexpectedly last week.

In a widely expected move, the Fed raised interest rates by 0.25 basis points to 1.50% at the conclusion of its policy meeting on Wednesday.

However, the central bank did not change its projections for 2018, which include three more interest rate hikes in both 2018 and 2019, disappointing expectations for four rate hikes next year.

In other news, Congressional Republicans reached a deal on final tax legislation on Wednesday, clearing the way for final votes next week.

But sentiment on the Canadian dollar was vulnerable amid declining oil prices on Thursday, amid sustained concerns over rising U.S. shale production.

The loonie was steady against the euro, with EUR/CAD at 1.5164.

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