Forex – USD/CAD Hovers at 4-Week Highs in Early Trade

© Reuters. Greenback supported vs. loonie after downbeat Canadian data – The U.S. dollar was hovering at a four-week high against its Canadian counterpart on Tuesday, after the release of disappointing Canadian trade balance data and as sentiment on the greenback remained broadly positive.

was up 0.09% at 1.2549 by 09:30 a.m. ET (13:30 GMT), the highest since January 11.

Statistics Canada reported on Tuesday that the trade deficit widened to in December from C$2.71 billion in November, whose figure was revised from a previously estimated deficit of C$2.54 billion.

Analysts had expected the trade deficit to narrow to C$2.30 billion in December.

The commodity-related Canadian dollar was also hit by the ongoing decline in amid fresh concerns over U.S. production levels.

Meanwhile, the greenback remained supported after the U.S. Department of Labor reported on Friday that the economy added in January. The report also showed that average hourly earnings in line with expectations last month.

The strong wage growth data fueled inflation expectations and underlined the case for the Federal Reserve to raise interest rates at a faster pace this year.

The loonie was higher against the euro, with shedding 0.14% to at 1.5483.

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