Investing.com – The U.S. dollar was almost unchanged against its Canadian counterpart on Thursday, as sentiment on the greenback remained strong, although a slight rebound in oil prices lent some support to the commodity-related Canadian currency.
Trading volumes were set to remain thin with U.S. markets closed for the Thanksgiving Day holiday.
USD/CAD hit 1.3535 during early U.S. trade, the pair’s highest since November 18; the pair subsequently consolidated at 1.3498.
The pair was likely to find support at 1.3420, Wednesday’s low and resistance at 1.3566, the high of November 18.
The greenback remained supported amid expectations that President-elect Donald Trump’s plans to ramp up fiscal spending and cut taxes will spur economic growth and inflation.
Faster growth would spark inflation, which in turn would prompt the Fed to tighten monetary policy a faster rate than had previously been expected.
The U.S. dollar has also been boosted by bets that the U.S. central bank will almost certainly raise interest rates next month.
Fed Chair Janet Yellen on Thursday reiterated that a rate hike “could well become appropriate relatively soon.”
Meanwhile, the Canadian dollar found mild support as oil prices moved slightly higher on Thursday.
The loonie was lower against the euro, with EUR/CAD rising 0.20% to 1.4262.