Investing.com - The U.S. dollar gained ground against its Canadian counterpart on Monday, as markets continued to digest Friday’s disappointing report on U.S. growth, while declining oil prices weighed on demand for the commodity-related Canadian currency.
Trading volumes were expected to remain thin with Canadian markets closed for Civic Day.
USD/CAD hit 1.3085 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3083, gaining 0.41%.
The pair was likely to find support at 1.2998, the low of July 29 and resistance at 1.3186, the high of July 29.
The greenback had weakened broadly after the advance read on second quarter U.S. gross domestic product showed on Friday a 1.2% annualized growth rate, well below expectations for 2.6%. First quarter GDP was revised lower to 0.8% from 1.1%.
The disappointing data lessened expectations for an early interest rate rise from the Federal Reserve.
Meanwhile, the Canadian dollar came under pressure as oil prices resumed their downward trend on Monday, amid growing supply glut concerns.
The loonie was lower against the euro, with EUR/CAD rising 0.36% to 1.4614.