28 Nov 2014
USD/CAD extends gains, nears 2014 high
FXStreet (Córdoba) - CAD has been one of the main movers over the last sessions as oil prices fall and the OPEC decision to maintain output quotas unchanged contributed to weaken the loonie, outweighing better-than-expected Canadian GDP figures.
USD/CAD briefly trimmed gains after GDP release, but quickly resumed the upside and rallied to a fresh 3-week high of 1.1443 before easing slightly. 2014 high scored at the beginning of this month at 1.1466 is next resistance to watch.
At time of writing, USD/CAD is trading at the 1.1410 zone, recording a 0.72% daily gain and on track for its first weekly gain in three.
Oil prices a headwind for CAD
“Lower crude oil prices would be a headwind for the CAD”, said the TD Securities team. “Based upon our Commodity colleagues' expectation that the drop we have seen in WTI is not all there is on the way down for it, we can only expect crude oil to continue exerting a drag on the CAD, fueling USD/CAD's move higher”.
USD/CAD briefly trimmed gains after GDP release, but quickly resumed the upside and rallied to a fresh 3-week high of 1.1443 before easing slightly. 2014 high scored at the beginning of this month at 1.1466 is next resistance to watch.
At time of writing, USD/CAD is trading at the 1.1410 zone, recording a 0.72% daily gain and on track for its first weekly gain in three.
Oil prices a headwind for CAD
“Lower crude oil prices would be a headwind for the CAD”, said the TD Securities team. “Based upon our Commodity colleagues' expectation that the drop we have seen in WTI is not all there is on the way down for it, we can only expect crude oil to continue exerting a drag on the CAD, fueling USD/CAD's move higher”.