Forex – USD/CAD Erases Losses After U.S., Canadian Data

© Reuters. Greenback bounces back vs. loonie but gains capped – The U.S. dollar erased losses against its Canadian counterpart on Wednesday, after the release of weak U.S. and Canadian data but the greenback’s gains were expected to be limited ahead of key U.S. economic reports due later in the week.

was up 0.23% at 1.2489 by 09:30 a.m. ET (13:30 GMT), the highest since January 5.

Official data on Wednesday showed that U.S. import prices in December, while export prices unexpectedly fell.

Market participants were now focusing on the release of due on Friday, for clues on the potential pace of rate hikes by the Federal Reserve.

In Canada, data showed that building permits in November.

However, the commodity-related Canadian dollar continued to benefit from rising , which were hovering near fresh multi-year highs on Wednesday ahead of the weekly U.S. inventory report.

The loonie was lower against the euro, with up 0.75% at 1.4985.

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