Investing.com – The Canadian dollar eased off a 40-month high against its U.S. counterpart on Monday, as oil prices retreated from recent highs and ahead of a Bank of Canada policy setting meeting on Tuesday.
USD/CAD hit 0.9574 during early U.S. trade, the daily high; the pair subsequently consolidated at 0.9569, gaining 0.16%.
The pair was likely to find support at 0.9525, Friday’s low and a 40-month low and resistance at 0.9623, last Thursday’s high.
Crude futures for delivery in May were trading at USD112.11 a barrel on the New York Mercantile Exchange, after peaking at USD113.46, a two-and-a-half-year high, earlier Monday.
The Canadian dollar closely tracks movements in crude oil prices as the commodity is the nation’s largest export.
Meanwhile, the BoC was expected to keep its interest rate unchanged on Tuesday, after policy makers reiterated last month that “considerable slack” remained in the economy. Exporters face “considerable challenges” from a currency trading at a more than a three-year high, they said.
Elsewhere, the loonie was up against the euro, with EUR/CAD slipping 0.16% to hit 1.3815.
Also Monday, New York Federal Reserve Bank President William Dudley said the U.S. central bank should not be too enthusiastic about tightening monetary policy soon as there is still significant slack in the economy.
USD/CAD hit 0.9574 during early U.S. trade, the daily high; the pair subsequently consolidated at 0.9569, gaining 0.16%.
The pair was likely to find support at 0.9525, Friday’s low and a 40-month low and resistance at 0.9623, last Thursday’s high.
Crude futures for delivery in May were trading at USD112.11 a barrel on the New York Mercantile Exchange, after peaking at USD113.46, a two-and-a-half-year high, earlier Monday.
The Canadian dollar closely tracks movements in crude oil prices as the commodity is the nation’s largest export.
Meanwhile, the BoC was expected to keep its interest rate unchanged on Tuesday, after policy makers reiterated last month that “considerable slack” remained in the economy. Exporters face “considerable challenges” from a currency trading at a more than a three-year high, they said.
Elsewhere, the loonie was up against the euro, with EUR/CAD slipping 0.16% to hit 1.3815.
Also Monday, New York Federal Reserve Bank President William Dudley said the U.S. central bank should not be too enthusiastic about tightening monetary policy soon as there is still significant slack in the economy.