Forex – USD/CAD Moves Higher after U.S., Canadian Data

© Reuters. Greenback gains ground vs. loonie in early trade – The U.S. dollar moved higher against its Canadian counterpart on Monday, after the release strong U.S. manufacturing data and a more disappointing economic report from Canada.

USD/CAD was up 0.51% at 1.2532 by 09:30 a.m. ET (13:30 GMT).

Data on Monday showed that the Empire State Manufacturing Index rose to 30.20 in October, beating analyst expectations of 20.70.

The greenback had weakened after data on Friday showed that U.S. consumer prices rose less than expected in September, both on a monthly and annual basis.

The report fueled uncertainty over whether the Federal Reserve will decide to raise interest rates before the end of the year.

Fed Chair Janet Yellen said Sunday that policymakers will be paying close attention to inflation data in the months ahead. She also said that the economy remains strong and the strength of the labor market calls for continued gradual increases in interest rates despite soft inflation.

In Canada, official data showed that foreign securities purchases amounted to only C$9.85 billion in August, down from C$23.97 billion in July, whose figure was revised from a previously estimated C$23.95 billion.

The loonie was lower against the euro, with EUR/CAD gaining 0.40% to 1.4796.

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