Canadian Dollar Surges to Highest Level in Eight Weeks Ahead of Fed Rate Decision

The Canadian dollar gained more strength against its US counterpart on Wednesday, as investors stayed off the US dollar until a monetary policy decision that comes out from the Federal Reserve is released today.

A number of data releases on Wednesday painted a mixed picture for the Canadian economy. Statistics Canada, the nation’s agency for census data, published its report for Canadian household debt in the third quarter earlier today. The report said that the ratio of household debt to personal disposable income rose to 166.9%, from an adjusted 166.4% in the second quarter.

Meanwhile in another economic sector, the National Bank of Canada updated its Composite House Price Index, which showed that Canadian home prices rose by 0.24% in November from a month earlier. The index also rose by 11.89% in November 2016 from November 2015.

The Canadian dollar moved higher even as oil prices declined today on increased concerns that a rise in US crude oil production could offset some of the output cuts that the Organization of the Petroleum Exporting Countries and other major producers decided to take.

USD/CAD traded at 1.3165 as of 18:46 GMT, after touching 1.3086 at 15:49 GMT, the pair’s highest level in eight weeks. USD/CAD opened trading today at 1.3122.

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