Daily Afternoon Report 21.12.2016
The U.S. dollar edged higher against its Canadian counterpart on Today, as expectations for more U.S. rate hikes next year still boosted the greenback, although higher oil prices lent some support to the commodity-related Canadian currency.
Trading volumes were expected to be thin this week with many traders away from the markets ahead of the Christmas holiday.
USD/CAD hit 1.3389 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3384, adding 0.13%.
The pair was likely to find support at 1.3314, the low of December 16 and resistance at 1.3436, Tuesday’s high and a two-and-a-half week high.
The greenback remained broadly supported after the Federal Reserve concluded its policy meeting last week by raising interest rates by 25 basis points and projected three more rate hikes for 2017.
Investors were also still cautious after Russian ambassador to Turkey, Andrei Karlov, was shot and killed at an art gallery in the Turkish capital of Ankara on Monday evening.
A few hours later, a truck plowed into a crowded Christmas market in central Berlin, killing 12 people and injuring up to 50 others.
The Canadian dollar found some support amid rising oil prices on Wednesday, due to bets for bullish U.S. stockpile data later in the day.
The loonie was lower against the euro, with EUR/CAD gaining 0.63% to 1.3972.