Forex - USD/CAD falls to daily low as higher oil prices weigh

Published 03/28/2011, 11:13 AM
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Investing.com - The U.S. dollar was down against its Canadian counterpart on Monday, slumping to a daily low as crude oil, Canada’s largest export, remained well supported by ongoing unrest in the Middle East and Libya.

USD/CAD hit 0.9742 during U.S. morning trade, a daily low; the pair subsequently consolidated at 0.9749, dropping 0.63%.

The pair was likely to find support at 0.9709, the low of March 14 and resistance at 0.9826, Friday’s high.

Crude oil contracts for delivery in May were trading at USD104.28 a barrel on the New York Mercantile Exchange, after peaking at USD105.74 earlier in the day.

Meanwhile, markets shrugged off domestic political uncertainty after opposition lawmakers toppled Prime Minister Stephen Harper’s Conservative Party government on Friday, triggering an election to be held as early as May.

The loonie was also up against the euro, with EUR/CAD slipping 0.69% to hit 1.3732.

Earlier in the day, a report from the U.S. Bureau of Economic Analysis showed that U.S. consumer spending rose more-than-expected in February, climbing by a seasonally adjusted 0.7%, surpassing expectations of a 0.5% gain.

The report also showed that personal income rose by 0.3%, while the core personal consumption expenditure index rose in line with expectations, adding 0.2%.

Also Monday, the National Association of Realtors said its pending home sales index jumped by 2.1% in February, after tumbling by 2.8% in January and exceeding expectations for a rise of 0.3%.


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