Investing.com - The U.S. dollar was trading close to eight-month highs against the Canadian dollar on Monday as concerns over the outlook for the Canadian economy dampened demand for the currency.
USD/CAD hit 1.0241 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0238, gaining 0.35%.
The pair was likely to find support at 1.0158, Friday’s low and near-term resistance at 1.0255, Friday’s high and an eight-month high.
Data on Friday showed that Canadian core consumer price inflation rose 1.0% year-on-year in January, well below the Bank of Canada’s 2% target.
A separate report showed that Canadian retail sales dropped 2.1% in December, the biggest one-month decline since April 2010.
Earlier this month, BoC Governor Mark Carney reiterated that rate hikes were less imminent, citing a weak inflation outlook.
Elsewhere, the loonie, as the Canadian dollar is also known, was sharply lower against the euro, with EUR/CAD rallying 1.12% to 1.3605.
The euro was supported by optimism that economic reforms in Italy would not be derailed by election results. Initial exit polls indicated that the center-left Democratic Party won the most votes, emerging with a clear lead over Silvio Berlusconi's party.
USD/CAD hit 1.0241 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0238, gaining 0.35%.
The pair was likely to find support at 1.0158, Friday’s low and near-term resistance at 1.0255, Friday’s high and an eight-month high.
Data on Friday showed that Canadian core consumer price inflation rose 1.0% year-on-year in January, well below the Bank of Canada’s 2% target.
A separate report showed that Canadian retail sales dropped 2.1% in December, the biggest one-month decline since April 2010.
Earlier this month, BoC Governor Mark Carney reiterated that rate hikes were less imminent, citing a weak inflation outlook.
Elsewhere, the loonie, as the Canadian dollar is also known, was sharply lower against the euro, with EUR/CAD rallying 1.12% to 1.3605.
The euro was supported by optimism that economic reforms in Italy would not be derailed by election results. Initial exit polls indicated that the center-left Democratic Party won the most votes, emerging with a clear lead over Silvio Berlusconi's party.