Weak Canadian GDP Data Boosts USDCAD To Five-Week Peak
The U.S. dollar soared strongly to the level not seen since mid-November against its Canadian peer on Friday in the wake of unexpectedly fragile Canadian economic growth data, not to mention expectation for an aggressive rate-hike path next year.
The pair USDCAD reached over one-month high at 1.35563 after the release of Canadian gross domestic product that showed the country’s economic contracted by 0.3% in October, lower than expectations for a 0.1% expansion.
The decline in October was partly due to a sharp drop in manufacturing output which shrank 2.0%. The sector, which has marked the largest monthly decrease since December 2013, was affected by a lower volume of manufactured goods exports.
Meanwhile, the greenback’s bull run has been supported by Federal Reserve’s remarks that the central bank may raise interest rates three times in 2017.
Buy Stop at 1.35450, Take profit at 1.35700, Stop loss at 1.35300