Investing.com - The U.S. dollar was trading at parity against the Canadian dollar on Monday, for the first time since early August as concerns over prospects for global growth bolstered safe haven demand.
USD/CAD hit 1.0004 during early U.S. trade, the pair’s highest since August 7; the pair subsequently consolidated at 0.9997, gaining 0.27%.
The pair was likely to find support at 0.9941, Friday’s low and resistance at 1.0075, the high of August 3.
Trade volumes were expected to remain light during U.S. hours on Monday, as a result of the first market-wide, unscheduled closure since September 2001 as Hurricane Sandy hit the northeastern U.S. coast.
Market sentiment was weighed by concerns over the global economic outlook, despite Friday’s better-than-expected U.S. data on economic growth, as weak third quarter corporate earnings results fuelled fears over a slowdown in demand.
Investors also remained cautious amid growing doubts over whether Greece can meet austerity targets as coalition talks on the latest round of spending cuts remained deadlocked.
Market participants were looking ahead to a meeting between Spanish Prime Minister Mariano Rajoy and Italian Prime Minister Mario Monti later in the day, as pressure mounted on Spain to request a bailout from its euro zone partners.
The Canadian dollar remained under pressure following Friday’s announcement by ratings agency Moody’s that the ratings of six Canadian banks are under review, pending possible downgrades.
The loonie, as the Canadian dollar is also known, was little changed against the euro, with EUR/CAD inching up 0.03% to 1.2902.
The U.S. dollar remained little changed after official data showed that the U.S. core personal consumption expenditure index ticked up 0.1% in September, matching expectations, while personal spending rose 0.8%, beating forecasts for a 0.6% increase.
USD/CAD hit 1.0004 during early U.S. trade, the pair’s highest since August 7; the pair subsequently consolidated at 0.9997, gaining 0.27%.
The pair was likely to find support at 0.9941, Friday’s low and resistance at 1.0075, the high of August 3.
Trade volumes were expected to remain light during U.S. hours on Monday, as a result of the first market-wide, unscheduled closure since September 2001 as Hurricane Sandy hit the northeastern U.S. coast.
Market sentiment was weighed by concerns over the global economic outlook, despite Friday’s better-than-expected U.S. data on economic growth, as weak third quarter corporate earnings results fuelled fears over a slowdown in demand.
Investors also remained cautious amid growing doubts over whether Greece can meet austerity targets as coalition talks on the latest round of spending cuts remained deadlocked.
Market participants were looking ahead to a meeting between Spanish Prime Minister Mariano Rajoy and Italian Prime Minister Mario Monti later in the day, as pressure mounted on Spain to request a bailout from its euro zone partners.
The Canadian dollar remained under pressure following Friday’s announcement by ratings agency Moody’s that the ratings of six Canadian banks are under review, pending possible downgrades.
The loonie, as the Canadian dollar is also known, was little changed against the euro, with EUR/CAD inching up 0.03% to 1.2902.
The U.S. dollar remained little changed after official data showed that the U.S. core personal consumption expenditure index ticked up 0.1% in September, matching expectations, while personal spending rose 0.8%, beating forecasts for a 0.6% increase.