Investing.com – The U.S. dollar erased losses against its Canadian counterpart on Monday, retreating from a 4-day low as crude oil prices tumbled amid increased risk aversion.
USD/CAD clawed up from 1.0121, the pair’s lowest since November 16 to hit 1.0169 during European afternoon trade, gaining 0.02%.
The pair was likely to find support at 1.0069, the low of November 16 and resistance at 1.0233, last Friday’s high.
Earlier in the day, crude oil prices tumbled 0.75% to hit USD 81.41 a barrel. Crude oil’s losses came as a rally sparked by Ireland’s request for a bailout faded amid concerns about possible contagion to other highly indebted euro zone states.
The Canadian dollar closely tracks changes in crude oil prices as Canada is a major supplier of crude oil to the U.S.
The loonie was up against the euro, with EUR/CAD shedding 0.27% to hit 1.3861.
Earlier Monday, as the cost of insuring sovereign bonds issued by Portugal - seen by many as the next riskiest sovereign after Ireland – rose, speculation mounted over which indebted euro zone nation would be next to seek assistance.
USD/CAD clawed up from 1.0121, the pair’s lowest since November 16 to hit 1.0169 during European afternoon trade, gaining 0.02%.
The pair was likely to find support at 1.0069, the low of November 16 and resistance at 1.0233, last Friday’s high.
Earlier in the day, crude oil prices tumbled 0.75% to hit USD 81.41 a barrel. Crude oil’s losses came as a rally sparked by Ireland’s request for a bailout faded amid concerns about possible contagion to other highly indebted euro zone states.
The Canadian dollar closely tracks changes in crude oil prices as Canada is a major supplier of crude oil to the U.S.
The loonie was up against the euro, with EUR/CAD shedding 0.27% to hit 1.3861.
Earlier Monday, as the cost of insuring sovereign bonds issued by Portugal - seen by many as the next riskiest sovereign after Ireland – rose, speculation mounted over which indebted euro zone nation would be next to seek assistance.