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Forex - USD/CAD Rises, U.S. Data Supports

Published 10/30/2017, 09:32 AM
© Reuters.  Greenback moves higher vs. loonie in early trade
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Investing.com - The U.S. dollar rose against its Canadian counterpart on Monday, after the release of upbeat U.S. data and amid new hopes for a December rate hike by the Federal Reserve.

USD/CAD was up 0.23% at 1.2840 by by 09:30 a.m. ET (13:30 GMT)

The U.S. Commerce Department reported on Monday that personal spending rose more than expected last month.

The U.S. dollar was already boosted after the Commerce Department reported on Friday that the U.S. economy grew at a 3% annual rate in the third quarter, better than forecasts for growth of 2.5%.

The stronger-than-expected reading underlined the case for the Federal Reserve to raise interest rates befoe the end of the year.

The greenback was also supported after House Republicans passed a budget blueprint for 2018 last week, setting the stage for a tax overhaul. Some investors believe tax reforms could bolster growth and prompt the Fed to raise rates at a faster pace.

However, investors remained cautious following a report that U.S. President Donald Trump is considering nominating Federal Reserve Governor Jerome Powell to lead the U.S. central bank, a move that would signal continuity for monetary policy.

Powell is seen less hawkish than Stanford University economist John Taylor, another potential nominee to lead the Fed.

The loonie was lower against the euro, with EUR/CAD up 0.27% at 1.4906.

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