Investing.com - The U.S. dollar was down against its Canadian counterpart on Tuesday, as speculation that European leaders will take decisive measures to deal with the euro zone debt crisis lifted market sentiment.
USD/CAD hit 1.0227 during European afternoon trade, the pair's lowest since September 22; the pair subsequently consolidated at 1.0199, tumbling 0.52%.
The pair was likely to find support at 1.0140, the low of December 1 and resistance at 1.0348, the high of September 23.
Market sentiment was boosted by speculation that European officials are examining ways to enlarge the capacity of the euro zone’s bailout fund, but expectations were tempered earlier after Spain's economy minister said plans to expand the fund sevenfold to EUR2 trillion were not on the table.
Also Tuesday, a U.S. report showed that the S&P/Case-Shiller home price index fell less-than-expected in July, dropping 4.1% following a 4.5% decline the previous month. Analysts had expected home prices to drop by 4.4% in July.
Meanwhile, the loonie strengthened as crude oil for delivery in October surged 2.91% to trade at USD82.59 a barrel on the New York Mercantile Exchange.
Raw materials, including oil account for about half of Canada’s export revenue.
The loonie was down against the euro with EUR/CAD inching up 0.05%, to trade at 1.3884.
Later in the day, a U.S. report on consumer confidence was to be released, while Federal Open Market Committee member Richard Fisher was also due to speak.
USD/CAD hit 1.0227 during European afternoon trade, the pair's lowest since September 22; the pair subsequently consolidated at 1.0199, tumbling 0.52%.
The pair was likely to find support at 1.0140, the low of December 1 and resistance at 1.0348, the high of September 23.
Market sentiment was boosted by speculation that European officials are examining ways to enlarge the capacity of the euro zone’s bailout fund, but expectations were tempered earlier after Spain's economy minister said plans to expand the fund sevenfold to EUR2 trillion were not on the table.
Also Tuesday, a U.S. report showed that the S&P/Case-Shiller home price index fell less-than-expected in July, dropping 4.1% following a 4.5% decline the previous month. Analysts had expected home prices to drop by 4.4% in July.
Meanwhile, the loonie strengthened as crude oil for delivery in October surged 2.91% to trade at USD82.59 a barrel on the New York Mercantile Exchange.
Raw materials, including oil account for about half of Canada’s export revenue.
The loonie was down against the euro with EUR/CAD inching up 0.05%, to trade at 1.3884.
Later in the day, a U.S. report on consumer confidence was to be released, while Federal Open Market Committee member Richard Fisher was also due to speak.