Investing.com - The U.S. dollar edged higher against the Canadian dollar in quiet holiday-thinned trade on Monday as markets in Canada remained closed for the Victoria Day holiday.
USD/CAD hit 1.0296 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0282, edging up 0.09%.
The pair was likely to find support at 1.0270, the session low and resistance at 1.0311, Friday’s high and a more than two-month high.
The Canadian dollar fell sharply against the greenback on Friday after weak Canadian inflation data sparked speculation over a possible rate cut by the Bank of Canada.
The annual rate of consumer price inflation fell to 0.4% in April from 1.0% the previous month, well below the BoC’s targeted inflation range of 1% to 3%.
Demand for the greenback continued to be underpinned after data on Friday showing that U.S. consumer sentiment rose to an almost six year high in May fuelled expectations that the Federal Reserve could scale back its easing program this year.
The loonie, as the Canadian dollar is also known, was lower against the yen, with CAD/JPY dropping 0.73% to 99.67.
The yen found broad support on Monday after Japan’s economy minister indicated that the yen’s correction from excessive strength was almost over and warned that further yen weakness could have a negative impact on Japan’s economy.
USD/CAD hit 1.0296 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0282, edging up 0.09%.
The pair was likely to find support at 1.0270, the session low and resistance at 1.0311, Friday’s high and a more than two-month high.
The Canadian dollar fell sharply against the greenback on Friday after weak Canadian inflation data sparked speculation over a possible rate cut by the Bank of Canada.
The annual rate of consumer price inflation fell to 0.4% in April from 1.0% the previous month, well below the BoC’s targeted inflation range of 1% to 3%.
Demand for the greenback continued to be underpinned after data on Friday showing that U.S. consumer sentiment rose to an almost six year high in May fuelled expectations that the Federal Reserve could scale back its easing program this year.
The loonie, as the Canadian dollar is also known, was lower against the yen, with CAD/JPY dropping 0.73% to 99.67.
The yen found broad support on Monday after Japan’s economy minister indicated that the yen’s correction from excessive strength was almost over and warned that further yen weakness could have a negative impact on Japan’s economy.