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

Investing.com -

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.

USD/CAD 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 U.S. producer price index rose 0.8% in October, disappointing expectations for an increase of 1.2%.

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

A separate report showed that U.S. industrial production 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 manufacturing sales 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 EUR/CAD edging down 0.12% to 1.4402.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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