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Forex - USD/CAD steady as E.U. summit awaited

Published 10/24/2011, 10:02 AM
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar was steady against its Canadian counterpart on Monday, trading close to a one-week low as traders remained cautious ahead of Wednesday's critical European Union summit.

USD/CAD hit 1.0047 during European afternoon trade, the pair's lowest since October 17; the pair subsequently consolidated at 1.0063, easing down 0.03%.

The pair was likely to find support at 0.9908, the low of September 21 and resistance at 1.0215, the high of October 19.

EU leaders moved closer to an agreement on bank recapitalization on Sunday, while Germany and France neared an agreement on expanding the firepower of the euro zone’s bailout fund. But divisions over restructuring Greek debt remained and a final agreement was not expected until Wednesday’s meeting.

The Canadian dollar found support as crude oil for delivery in December jumped 1.46% to trade at USD88.69 a barrel on the New York Mercantile Exchange.

Raw materials, including oil account for about half of Canada’s export revenue.

The loonie was also higher against the euro with EUR/CAD falling 0.41%, to trade at 1.3931.

Earlier Monday, a preliminary report showed that the Chinese HSBC manufacturing activity index rose to 51.1 in October, a five-month high after contracting in the three previous months.

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