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Forex - USD/CAD hovers near 14-month peak after U.S., Canadian data

Published 2017-04-28, 09:26 a/m
© Reuters.  Greenback still higher vs. loonie after GDP reports
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Investing.com - The U.S. dollar was hovering near 14-month highs against its Canadian counterpart on Friday, after the release of disappointing economic growth reports from both the U.S. and Canada and as the recent rise in oil prices was seen as short term.

USD/CAD hit 1.3666 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3651, adding 0.11%.

The pair was likely to find support at 1.3528, Thursday’s low and resistance at 1.3672, Thursday’s high and a 14-month peak.

The U.S. Bureau of Economic Analysis said gross domestic product rose 0.7% in the first quarter, down from the 2.1% growth rate registered in the fourth quarter of 2016. Analysts had expected the U.S. GDP to rise 1.2% in the last quarter.

Meanwhile, sentiment on the greenback remained fragile after U.S. President Donald Trump said he will either renegotiate or terminate a "horrible" trade deal with South Korea.

The comments came shortly after Trump said that a "major, major" conflict with North Korea is possible but he is looking for a diplomatic answer.

Also Friday, Statistics Canada reported that the country’s GDP was flat in February, compared to expectations for a 0.1% rise and after a growth rate of 0.6% the previous month.

The commodity-related Canadian dollar was also under pressure as the day’s rise in oil prices was expected to remain limited due to ongoing supply glut concerns.

The loonie was lower against the euro, with EUR/CAD climbing 0.46% to 1.4890.

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