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USD/CAD at the highest in two months as falling oil

The Canadian dollar has reasons to rise: the economy grew by 0.3% in December 2016, bang on expectations, but this came on top of an upwards revision for November. All in all, the Canadian economy enjoyed stronger-than-expected growth at 2%  instead of 1.7% expected. On an annualized basis,  the growth rate was 2.6%, beating predictions of 2%.

However, oil prices took a tumble. After failing to extend the gains to a new cycle high above $55.20, WTI crude oil turned south and is trading at the $52 handle.

A third factor is the strength of the US dollar. The greenback continues enjoying the Dudley effect, that was accompanied by Williams and extended by Brainard. The three Fed officials hinted about a rate hike in March. We will  hear from Fed Chair Janet Yellen tomorrow at 18:00 GMT.

Dollar/CAD trades around 1.34, above resistance at 1.3380 and under 1.3460. Here is how it looks on the chart:

More:  BOC sees glass half empty – USD/CAD recovers


Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.