Investing.com - The U.S. dollar was trading close to a one-year low against the Canadian dollar on Monday, amid growing expectation that the Federal Reserve may undertake more stimulus measures at its upcoming policy meeting.
USD/CAD hit 0.9766 during early U.S. trade, the pair’s lowest since September 2, 2011; the pair subsequently consolidated at 0.9779, dipping 0.06%.
The pair was likely to find support at 0.9756, the low of August 31, 2011 and resistance at 0.9833, Friday’s high.
Sentiment on the greenback was hit by talk that that the U.S. central bank will implement further quantitative easing measures to strengthen the economic recovery following its policy meeting on Thursday.
The Department of Labor said Friday that the U.S. economy added 96,000 jobs in August, well below expectations for 125,000, following a downwardly revised 141,000 in July.
In contrast, official data showed that Canada added 34,300 jobs in August, outstripping expectations for a 10,000 increase and erasing the previous months 34,400 decline.
The Canadian dollar has been supported in recent weeks by prospects for a rate hike by the Bank of Canada in the coming months.
Elsewhere, traders remained cautious ahead of a German court ruling on the constitutionality of the euro zone’s bailout fund, the European Stability Mechanism later in the week.
Overall market sentiment continued to be underpinned after the European Central Bank unveiled details of its bond purchasing program, which is aimed at lowering the borrowing costs of peripheral euro zone members.
The loonie, as the Canadian dollar is also known, was also higher against the euro, with EUR/CAD down 0.34% to 1.2499.
Trade looked likely to remain subdued on Monday, as investors looked ahead to Wednesday’s German court ruling on the ESM, as well as the outcome of the Fed’s policy meeting on Thursday.
USD/CAD hit 0.9766 during early U.S. trade, the pair’s lowest since September 2, 2011; the pair subsequently consolidated at 0.9779, dipping 0.06%.
The pair was likely to find support at 0.9756, the low of August 31, 2011 and resistance at 0.9833, Friday’s high.
Sentiment on the greenback was hit by talk that that the U.S. central bank will implement further quantitative easing measures to strengthen the economic recovery following its policy meeting on Thursday.
The Department of Labor said Friday that the U.S. economy added 96,000 jobs in August, well below expectations for 125,000, following a downwardly revised 141,000 in July.
In contrast, official data showed that Canada added 34,300 jobs in August, outstripping expectations for a 10,000 increase and erasing the previous months 34,400 decline.
The Canadian dollar has been supported in recent weeks by prospects for a rate hike by the Bank of Canada in the coming months.
Elsewhere, traders remained cautious ahead of a German court ruling on the constitutionality of the euro zone’s bailout fund, the European Stability Mechanism later in the week.
Overall market sentiment continued to be underpinned after the European Central Bank unveiled details of its bond purchasing program, which is aimed at lowering the borrowing costs of peripheral euro zone members.
The loonie, as the Canadian dollar is also known, was also higher against the euro, with EUR/CAD down 0.34% to 1.2499.
Trade looked likely to remain subdued on Monday, as investors looked ahead to Wednesday’s German court ruling on the ESM, as well as the outcome of the Fed’s policy meeting on Thursday.