Forex – USD/CAD Rises Despite Upbeat Canadian Data


© Reuters. Greenback gains ground vs. broadly weaker loonie

Investing.com – The U.S. dollar rose against its Canadian counterpart on Friday, despite the release of upbeat data from Canada and overall caution regarding the greenback, as a sharp decline in oil prices dampened demand for Canada’s commodity-related currency.

was up 0.17% at 1.2442 by 09:30 a.m. ET (13:30 GMT).

Sentiment on the greenback remained vulnerable as U.S. lawmakers on Thursday, sparking fears of a government shutdown this weekend.

The U.S. dollar was also affected by the fact that the yield on the U.S. 10-year Treasury hit its highest level since 2014.

The dollar has been pressured lower in recent sessions amid concerns the global economic recovery will outpace U.S. growth and prompt other major central banks, including the European Central Bank to begin unwinding loose monetary policy at a faster pace.

In Canada, data on Friday showed that manufacturing sales increased in November, beating expectations for a 2.0% gain. Manufacturing sales slipped 0.6% in October, whose figure was revised from a previously estimated 0.4% dip.

But the local currency was pressured lower by dropping , following news of an increase in U.S. production.

The Canadian dollar also remained on the downside after the Bank of Canada on Wednesday hiked its overnight cash rate to from 1.0%, in a widely anticipated decision.

The loonie was also lower against the euro, with up 0.17% to 1.5225.

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