Forex USD CAD edges higher despite strong Canadian GDP data
Forex USD/CAD…The U.S. dollar edged higher against its Canadian counterpart on Wednesday, despite the release of strong Canadian economic growth data, as tumbling oil prices limited the Canadian currency’s gains.
USD/CAD hit 1.3485 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3484, up 0.19%.
The pair was likely to find support at 1.3424, the low of May 29 and resistance at 1.3508, Tuesday’s high.
Statistics Canada said gross domestic product rose 0.5% in March, beating expectations for a growth rate of 0.2% and after a flat reading the previous month.
But the commodity-related Canadian dollar’s gains were capped by sharply lower Crude Oil WTI Futures amid fresh supply glut concerns.
Meanwhile, the greenback remained under pressure amid fears investigations into President Donald Trump’s ties with Russia could hamper his administration’s progress on promised stimulus measures.
Market participants were already eyeing Friday’s nonfarm payrolls report for further indications on the strength of the U.S. job market, which could give additional clues on whether or not the Federal Reserve will hike rates at its June policy meeting.
The loonie was lower against the euro, with EUR/CAD gaining 0.47% to 1.5128.