Investing.com - The U.S. dollar fell to a one-week low against the Canadian dollar on Tuesday, as expectations mounted that the European Central Bank will soon act to tackle the region’s debt crisis, but investors remained cautious ahead of a speech by Federal Reserve Chairman Ben Bernanke later in the week.
USD/CAD hit 0.9852 during early U.S. trade, the pair’s lowest since August 21; the pair subsequently consolidated at 0.9855, shedding 0.51%.
The pair was likely to find support at 0.9841, the low of August 21 and a three-and-a-half month low and resistance at 0.9916, the session high.
Market sentiment was boosted earlier after the ECB said its president Mario Draghi would be unable to attend the Federal Reserve’s annual summit in Jackson Hole, Wyoming, later this week due to a “heavy workload”.
The reports fuelled expectations that the ECB is working on policy measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
The ECB president had been due to speak at the summit on Saturday, one day after a keenly anticipated speech by Fed Chairman Ben Bernanke, which comes amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.
Meanwhile, auctions of Spanish and Italian government debt earlier saw borrowing costs fall and attracted strong investor demand.
The Canadian dollar was also boosted by stronger oil prices, with crude futures for delivery in October trading at USD96.17 a barrel on the New York Mercantile Exchange, up 0.73% amid concerns over a disruption to supplies from storm activity in the Gulf of Mexico.
Raw materials, including oil account for about half of Canada’s export revenue.
The loonie, as the Canadian dollar is also known, was little changed against the euro, with EUR/CAD dipping 0.02% to 1.2379.
Later Tuesday, the U.S. was to release a report on consumer confidence.
USD/CAD hit 0.9852 during early U.S. trade, the pair’s lowest since August 21; the pair subsequently consolidated at 0.9855, shedding 0.51%.
The pair was likely to find support at 0.9841, the low of August 21 and a three-and-a-half month low and resistance at 0.9916, the session high.
Market sentiment was boosted earlier after the ECB said its president Mario Draghi would be unable to attend the Federal Reserve’s annual summit in Jackson Hole, Wyoming, later this week due to a “heavy workload”.
The reports fuelled expectations that the ECB is working on policy measures to help stabilize the euro zone's sovereign debt markets, ahead of its next policy meeting on September 6.
The ECB president had been due to speak at the summit on Saturday, one day after a keenly anticipated speech by Fed Chairman Ben Bernanke, which comes amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.
Meanwhile, auctions of Spanish and Italian government debt earlier saw borrowing costs fall and attracted strong investor demand.
The Canadian dollar was also boosted by stronger oil prices, with crude futures for delivery in October trading at USD96.17 a barrel on the New York Mercantile Exchange, up 0.73% amid concerns over a disruption to supplies from storm activity in the Gulf of Mexico.
Raw materials, including oil account for about half of Canada’s export revenue.
The loonie, as the Canadian dollar is also known, was little changed against the euro, with EUR/CAD dipping 0.02% to 1.2379.
Later Tuesday, the U.S. was to release a report on consumer confidence.