Forex - USD/CAD trims gains after U.S., Canadian data

Greenback pulls back from session highs vs. loonie but remains supported

Investing.com – The U.S. dollar trimmed gains against its Canadian counterpart on Wednesday, after the release of disappointing U.S. producer price inflation data, while a positive manufacturing sales report from Canada lent support to the local currency.

pulled away from 1.3506, the session high, to hit 1.3445 during early U.S. trade, steady for the day.

The pair was likely to find support at 1.3380, the low of November 10 and resistance at 1.3561, Tuesday’s high.

The greenback weakened mildly after data showed that the rose 0.8% in October, disappointing expectations for an increase of 1.2%.

The , which excludes food and energy, fell 0.2% last month, compared to expectations for a 0.2% gain.

A separate report showed that was flat in October, confounding expectations for a 0.2% increase.

But the U.S. dollar remained broadly supported by growing expectations that the Federal Reserve will raise interest rates at its December policy meeting.

The greenback was also underpinned by hopes that increased fiscal spending and tax cuts under Donald Trump’s administration will bolster economic growth and inflation.

In Canada, data showed that rose 0.3% in September, exceeding expectations for a 0.1% gain, after an increase of 0.9% the previous month.

The loonie was higher against the euro, with edging down 0.12% to 1.4402.

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Forex - USD/CAD trims gains after U.S., Canadian data