Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

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

Published 09/26/2014, 09:25 AM
Updated 09/26/2014, 09:25 AM
Greenback rises vs. loonie after U.S. data, UoM report ahead

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.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

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.

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.