Investing.com - The U.S. dollar was higher against its Canadian counterpart on Wednesday, as fresh concerns over the debt crisis in the euro zone curbed investor demand for higher-yielding assets.
USD/CAD hit 1.0195 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0193, gaining 0.40%.
The pair was likely to find support at 1.0139, the session low and resistance at 1.0239, Tuesday’s high.
Market sentiment was hit after Fitch Ratings said the European Central Bank needs to do more to prevent the collapse of the euro, saying the bank should step up its bond purchasing program to support troubled euro zone states.
Elsewhere, revised data showing that the euro zone’s economy grew less than initially expected in third quarter of 2011 underscored fears over impact of the region’s financial crisis on the outlook for growth.
Markets were also jittery ahead of Thursday’s ECB policy meeting and government bond auctions by Spain and Italy later in the week.
The broadly stronger greenback also weighed on crude oil prices, with crude oil for delivery in February tumbling 0.84% to trade at USD101.39 a barrel on the New York Mercantile Exchange.
Raw materials, including oil account for about half of Canada’s export revenue.
Meanwhile, the Canadian dollar was higher against the euro, with EUR/CAD shedding 0.33% to hit 1.2930.
Later Wednesday, the U.S. was to produce official data on crude oil stockpiles, while the Federal Reserve was to release its Beige Book.
USD/CAD hit 1.0195 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0193, gaining 0.40%.
The pair was likely to find support at 1.0139, the session low and resistance at 1.0239, Tuesday’s high.
Market sentiment was hit after Fitch Ratings said the European Central Bank needs to do more to prevent the collapse of the euro, saying the bank should step up its bond purchasing program to support troubled euro zone states.
Elsewhere, revised data showing that the euro zone’s economy grew less than initially expected in third quarter of 2011 underscored fears over impact of the region’s financial crisis on the outlook for growth.
Markets were also jittery ahead of Thursday’s ECB policy meeting and government bond auctions by Spain and Italy later in the week.
The broadly stronger greenback also weighed on crude oil prices, with crude oil for delivery in February tumbling 0.84% to trade at USD101.39 a barrel on the New York Mercantile Exchange.
Raw materials, including oil account for about half of Canada’s export revenue.
Meanwhile, the Canadian dollar was higher against the euro, with EUR/CAD shedding 0.33% to hit 1.2930.
Later Wednesday, the U.S. was to produce official data on crude oil stockpiles, while the Federal Reserve was to release its Beige Book.