Investing.com - The U.S. dollar pulled back from session highs against the Canadian dollar on Tuesday but remained supported as concerns over possible military action against Syria’s government mounted.
USD/CAD hit 1.0540 during early U.S. trade, the highest since Friday; the pair subsequently consolidated at 1.0508, 0.07% higher for the day.
The pair was likely to find support at 1.0468, the low of August 22 and resistance at 1.0567, Friday’s high and a seven-week high.
Expectations for a military strike against Syria grew after U.S. Defense Secretary Chuck Hagel said American forces are "ready" to launch strikes if President Obama chooses to order an attack.
On Tuesday, U.S. Secretary of State John Kerry said there was “undeniable” proof that the government had used chemical weapons against civilians.
Meanwhile, doubts over the timing of a reduction in Federal Reserve stimulus continued after data on Monday showed that U.S. durable goods orders fell more than expected last month.
The Commerce Department said U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest drop since August 2012. The weak data raised concerns over the strength of the U.S. economic recovery.
The loonie, as the Canadian dollar is also known, was trading close to 22-month lows against the euro, with EUR/CAD up 0.22% to 1.0467.
The euro found support after a report showed that the closely watched Ifo index of German business climate rose to a 16-month high of 107.5 in August from 106.2 in July. Economists had expected the index to tick up to 107.0.
The Current Assessment Index rose to 112.0 in August from 110.1 in July, compared to expectations for an increase to 110.9.
USD/CAD hit 1.0540 during early U.S. trade, the highest since Friday; the pair subsequently consolidated at 1.0508, 0.07% higher for the day.
The pair was likely to find support at 1.0468, the low of August 22 and resistance at 1.0567, Friday’s high and a seven-week high.
Expectations for a military strike against Syria grew after U.S. Defense Secretary Chuck Hagel said American forces are "ready" to launch strikes if President Obama chooses to order an attack.
On Tuesday, U.S. Secretary of State John Kerry said there was “undeniable” proof that the government had used chemical weapons against civilians.
Meanwhile, doubts over the timing of a reduction in Federal Reserve stimulus continued after data on Monday showed that U.S. durable goods orders fell more than expected last month.
The Commerce Department said U.S. durable goods orders dropped 7.3% in July, worse than expectations for a 4% decline. It was the largest drop since August 2012. The weak data raised concerns over the strength of the U.S. economic recovery.
The loonie, as the Canadian dollar is also known, was trading close to 22-month lows against the euro, with EUR/CAD up 0.22% to 1.0467.
The euro found support after a report showed that the closely watched Ifo index of German business climate rose to a 16-month high of 107.5 in August from 106.2 in July. Economists had expected the index to tick up to 107.0.
The Current Assessment Index rose to 112.0 in August from 110.1 in July, compared to expectations for an increase to 110.9.