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Forex - USD/CAD rises to 2-week highs despite geopolitical concerns

Published 04/19/2017, 09:27 AM
Updated 04/19/2017, 09:27 AM
© Reuters.  Greenback moves higher vs. loonie in early trade

© Reuters. Greenback moves higher vs. loonie in early trade

Investing.com - The U.S. dollar rose to a two-week high against its Canadian counterpart on Wednesday, as the greenback continued to recover from the previous session’s disappointing U.S. data and despite ongoing geopolitical concerns and higher oil prices.

USD/CAD hit 1.3437 during early U.S. trade, the pair’s highest since April 6; the pair subsequently consolidated at 1.3439, gaining 0.43%.

The pair was likely to find support at 1.3309, Tuesday’s low and resistance at 1.3487, the high of March 15.

The greenback recovered from a report by the U.S. Commerce Department on Tuesday saying that housing starts fell in March, likely due to bad weather, while building permits rose.

A separate report showed that U.S. industrial production rose in line with economists’ forecasts in March, while manufacturing production unexpectedly fell.

But sentiment on the greenback remained vulnerable as trade talks between the U.S. and Japan got underway this week, with markets awaiting indications of the direction U.S. trade policy could take under President Donald Trump, who campaigned on a protectionist platform.

Heightened tensions around North Korea, which has vowed to conduct more missile tests following Sunday's failed missile launch, also continued to weigh on the greenback.

U.S. Vice President Mike Pence said on Wednesday that Washington would work with its allies and China to put economic and diplomatic pressure on North Korea.

The loonie was lower against the euro, with EUR/CAD rising 0.33% to 1.4406.

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