USDCAD Rallies As Markets Bet On December Fed Rate Hike
USDCAD rose to the highest level since March 16th at 1.33958 on Monday, extending the rally to a fourth straight trading day.
The Canadian dollar lost the support extended via the oil price, as oil stumbled following the Iraqi oil minister’s comments on Sunday that the nation should be exempted from production cuts proposed by the OPEC. The U.S dollar strengthened after St. Louis Federal Reserve President James Bullard’s hawkish remarks on interest rates.
Speaking on the U.S. economy and monetary policy at a conference on Monday, Bullard reinforced his previous comments by reiterating the necessity of a U.S rate hike this year.
The case for raising interest rates was strengthened as a report from Markit indicated that U.S. Manufacturing activity hit the highest level in a year this month with the index at 53.2, beating forecasts of a slight increase to 51.6.
Buy Stop at 1.34000, Take profit at 1.34430, Stop loss at 1.33550