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Forex - USD/CAD edges lower but remains close to 11-year peak

Published 12/21/2015, 09:25 AM
© Reuters.  Greenback slips lower vs. loonie, but losses seen limited
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Investing.com - The U.S. dollar edged lower against its Canadian counterpart on Monday, but remained close to a more than 11-yeaer peak as demand for the greenback remained supported by the Federal Reserve’s decision to raise interest rates for the first time in nearly a decade.

USD/CAD hit 1.3914 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3933, slipping 0.17%.

The pair was likely to find support at 1.3851, Friday’s low and resistance at 1.4000, Friday’s high and a more than 11-year peak.

The dollar rallied last week after the Fed hiked interest rates by a quarter of a percentage point to a range between 0.25% and 0.5% in a widely expected move.

Commenting on the decision, Fed Chair Janet Yellen said the FOMC will not be mechanical in its approach to normalize monetary policy and that future rate hikes would be gradual and data dependent.

Meanwhile, the commodity-related Canadian dollar remained under pressure after crude oil prices fell to 34.29$ on Friday, the lowest level since 2004, amid renewed worries over a global supply glut.

In early U.S. trading hours, crude oil futures for February delivery were down 1.16% at $35.64.

The loonie was steady against the euro, with EUR/CAD at 1.5172.

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