As promised, the latest on USD/CAD. The Canadian dollar is on the rise, traders, and for a good reason since the country’s economy experienced growth by 0.3% in December 2016, against experts’ forecasts and expectations. This rise followed a positive revision for November. Overall, Canada’s economy enjoyed a 2% growth, above the estimated 1.7%. From an annualising perspective, the growth rate was 2.6%, banging on 2% forecasts.
Unlike the CAD, oil rates dropped. Failing to extend the yields to a new cycle following an ascending trend, above $55.20, WTI crude oil took a tumble and is now trading at the $52 handle.
Experts suggest that the USD strength counts among the determining factors of this phenomenon. Currently USD/CAD trades at about 1.34, above resistance at 1.3380 and below 1.3460.
More on trading education, coming up soon!