Foreign exchange - USD/CAD climbs to recent 11-1/2 yr highs

Greenback reaches fresh multi-year peak vs. loonie

Investing.com – The U.S. dollar climbed to fresh 11-1/2 year highs against its Canadian counterpart on Tuesday, as expectations for an upcoming U.S. rate hike continued to support the greenback and declining oil prices weighed on the Canadian currency.

hit 1.3605 during early U.S. trade, the pair’s highest since June 2004; the pair subsequently consolidated at 1.3585, climbing 0.63%.

The pair was likely to find support at 1.3361, Monday’s low and resistance at 1.3812.

The greenback remained broadly supported after Friday’s strong U.S. employment data fuelled further expectations that the Federal Reserve will hike interest rates for the first time since 2006 at its upcoming meeting on December 15-16.

In Canada, data showed that increased by 9.1% in October, blowing past expectations for a 3.2% gain, after a revised decline of 6.6% the previous month.

Data also showed that increased by 211,900 in October, compared to expectations for a 198,700 rise.

But the commodity-linked Canadian dollar continued to be pressured lower but declining oil prices. for January delivery were down 1.86% at $ 36.98, the lowest level since 2009.

The loonie was also lower against the euro, with jumping 1.15% to 1.4793.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Foreign exchange - USD/CAD climbs to recent 11-1/2 yr highs