FRX: USD/CAD falls to 2-day low as crude oil prices rally
Forex Pros- The U.S. dollar fell for the first time in five days against its Canadian counterpart on Wednesday, tumbling to a 2-day low, as crude oil, Canada’s largest export, rallied.
USD/CAD hit 1.0112 European afternoon trade, the pair’s lowest since December 20; the pair subsequently consolidated at 1.0162, shedding 0.08%.
The pair was likely to find support at 1.0101, the low of December 20, and resistance at 1.0205, Tuesday’s high.
Earlier in the day, crude oil prices jumped 0.68% to hit a 2-week high of USD 90.44 a barrel. The Canadian dollar closely tracks changes in crude oil prices as Canada is a major supplier of crude oil to the U.S.
Crudes gains came after official data showed that U.S. GDP grew at a faster rate than previously estimated in the third quarter, rising by 2.6%, up from a previous estimate for growth of 2.5%.
However analysts had expected U.S. gross domestic product to rise by 2.7% in the third quarter.
Meanwhile, the loonie was also up against the euro, with EUR/CAD sliding 0.04% to hit 1.3319.
Later in the day, the U.S. was to release as data on existing home sales, house prices as well as a report on crude oil inventories.
The report on crude oil inventories can be a big market mover for the loonie, as Canada is the largest foreign supplier of crude oil to the U.S.
