Investing.com - The U.S. dollar fell to session lows against the Canadian dollar on Monday, as hopes for progress on resolving the U.S. fiscal cliff and rising crude oil prices supported demand for the Canadian dollar.
USD/CAD hit 0.9962 during early U.S. trade, the pair’s lowest since November 8; the pair subsequently consolidated at 0.9963, shedding 0.48%.
The pair was likely to find support at 0.9873, the low of November 7 and resistance at 1.0016, the session high.
Market sentiment was bolstered after U.S. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal cliff, a combination of automatic tax increases and spending cuts due to come into effect from January, were "constructive."
The commodity linked Canadian dollar was also boosted by rising crude oil prices on Monday, with crude futures for delivery in January trading at USD88.89 a barrel on the New York Mercantile Exchange, rallying 2.25%.
Crude’s gains came largely on the back of increased tensions in the Middle East.
Raw materials, including oil account for about half of Canada’s export revenue.
The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.23% to 1.2728.
Later Monday, the U.S. was to release an industry report on existing home sales.
USD/CAD hit 0.9962 during early U.S. trade, the pair’s lowest since November 8; the pair subsequently consolidated at 0.9963, shedding 0.48%.
The pair was likely to find support at 0.9873, the low of November 7 and resistance at 1.0016, the session high.
Market sentiment was bolstered after U.S. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal cliff, a combination of automatic tax increases and spending cuts due to come into effect from January, were "constructive."
The commodity linked Canadian dollar was also boosted by rising crude oil prices on Monday, with crude futures for delivery in January trading at USD88.89 a barrel on the New York Mercantile Exchange, rallying 2.25%.
Crude’s gains came largely on the back of increased tensions in the Middle East.
Raw materials, including oil account for about half of Canada’s export revenue.
The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.23% to 1.2728.
Later Monday, the U.S. was to release an industry report on existing home sales.