Investing.com – The U.S. dollar erased losses against its Canadian counterpart on Monday, retreating from a daily low in choppy, holiday-thinned trade, after crude oil prices turned lower.
USD/CAD clawed up from 1.0057, a daily low, to hit 1.0088 during European afternoon trade, gaining 0.12%.
The pair was likely to find short-term support at 1.0031, the low of December 16 and resistance at 1.0165, the high of December 23.
With markets in Canada closed due to the Christmas holiday and many investors already away on year-end leave, trading volumes were low, resulting in volatile trade.
Earlier in the day, crude oil prices retreated from a 26-month high, falling 0.58% to hit USD 90.94 a barrel. Crude oil prices were pressured lower after the People’s Bank of China unexpectedly raised its benchmark interest rate for the second time in ten weeks, in an effort to curb inflation, which surged to a 28-month high in November.
The Canadian dollar closely tracks changes in crude oil prices as Canada is a major supplier of crude oil to the U.S.
Meanwhile, the loonie was also down against the euro, with EUR/CAD rising 0.34% to hit 1.3257.
Investors expect trading to be quiet throughout the day, with markets in Canada closed for holiday and many traders in the U.S. on year-end leave.
USD/CAD clawed up from 1.0057, a daily low, to hit 1.0088 during European afternoon trade, gaining 0.12%.
The pair was likely to find short-term support at 1.0031, the low of December 16 and resistance at 1.0165, the high of December 23.
With markets in Canada closed due to the Christmas holiday and many investors already away on year-end leave, trading volumes were low, resulting in volatile trade.
Earlier in the day, crude oil prices retreated from a 26-month high, falling 0.58% to hit USD 90.94 a barrel. Crude oil prices were pressured lower after the People’s Bank of China unexpectedly raised its benchmark interest rate for the second time in ten weeks, in an effort to curb inflation, which surged to a 28-month high in November.
The Canadian dollar closely tracks changes in crude oil prices as Canada is a major supplier of crude oil to the U.S.
Meanwhile, the loonie was also down against the euro, with EUR/CAD rising 0.34% to hit 1.3257.
Investors expect trading to be quiet throughout the day, with markets in Canada closed for holiday and many traders in the U.S. on year-end leave.