Investing.com - The U.S. dollar rose to almost five-month highs against the Canadian dollar on Monday as the price of crude oil, Canada’s largest export, fell sharply after a deal was reached to restrict Iran’s nuclear program in exchange for the easing of economic sanctions.
USD/CAD was up 0.33% to 1.0552 during early U.S. trade, after rising as high as 1.0583 earlier, the loftiest level since July 8.
The pair was likely to find support at 1.0520, the session low and resistance at 1.0600.
Trade sanctions imposed on Iran due to its nuclear program have stripped out more than 1 million barrels of oil per day from the global market over the past two years.
New York-traded oil futures fell by as much as 1.65% earlier in the day to hit a session low of USD93.26 a barrel. Brent oil futures for January delivery plunged 1.95% to trade at USD108.91 a barrel.
Canada is one of the fastest growing oil producers in the world and its currency is sensitive to variability in crude oil prices.
Demand for the U.S. dollar continued to be underpinned by expectations that the Federal Reserve could start tapering its stimulus program at one of its next few meetings.
Elsewhere, the loonie, as the Canadian dollar is also known, was slightly higher against the euro, with EUR/CAD dipping 0.09% to 1.4246.
The U.S. was to release data on pending home sales later Monday.
USD/CAD was up 0.33% to 1.0552 during early U.S. trade, after rising as high as 1.0583 earlier, the loftiest level since July 8.
The pair was likely to find support at 1.0520, the session low and resistance at 1.0600.
Trade sanctions imposed on Iran due to its nuclear program have stripped out more than 1 million barrels of oil per day from the global market over the past two years.
New York-traded oil futures fell by as much as 1.65% earlier in the day to hit a session low of USD93.26 a barrel. Brent oil futures for January delivery plunged 1.95% to trade at USD108.91 a barrel.
Canada is one of the fastest growing oil producers in the world and its currency is sensitive to variability in crude oil prices.
Demand for the U.S. dollar continued to be underpinned by expectations that the Federal Reserve could start tapering its stimulus program at one of its next few meetings.
Elsewhere, the loonie, as the Canadian dollar is also known, was slightly higher against the euro, with EUR/CAD dipping 0.09% to 1.4246.
The U.S. was to release data on pending home sales later Monday.