Investing.com - The U.S. dollar rose to a three-day high against its Canadian counterpart on Monday, as safe haven demand remained supported after disappointing U.S. personal spending data while markets were jittery ahead of the outcome of a European Union summit.
USD/CAD hit 1.0070 during early U.S. trade, the pair’s highest since January 25; the pair subsequently consolidated at 1.0057, adding 0.40%.
The pair was likely to find support at 0.9987, the low of January 27 and resistance at 1.0099, the high of October 24.
Sentiment was hit after official data showed that U.S. personal spending was flat in December, confounding expectations for a 0.2% gain.
Personal spending for November rose by an unrevised 0.1%.
Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.
Meanwhile, delays in negotiations between Greece and its private creditors on a debt swap deal also weighed on risk appetite.
An agreement is necessary for Greece to secure its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.
European Union leaders were expected to finalize discussions on a pact aimed at enforcing deficit control measures in the region and to sign off on a EUR500 billion permanent rescue fund to be set up this year.
Elsewhere, the loonie was higher against the euro with EUR/CAD shedding 0.55%, to hit 1.3170.
Also Thursday, crude oil for delivery in March declined 0.53% to trade at USD99.03 a barrel on the New York Mercantile Exchange.
Raw materials, including oil account for about half of Canada’s export revenue.
USD/CAD hit 1.0070 during early U.S. trade, the pair’s highest since January 25; the pair subsequently consolidated at 1.0057, adding 0.40%.
The pair was likely to find support at 0.9987, the low of January 27 and resistance at 1.0099, the high of October 24.
Sentiment was hit after official data showed that U.S. personal spending was flat in December, confounding expectations for a 0.2% gain.
Personal spending for November rose by an unrevised 0.1%.
Consumer spending is the single biggest source of U.S. economic growth, accounting for as much as two-thirds of economic activity.
Meanwhile, delays in negotiations between Greece and its private creditors on a debt swap deal also weighed on risk appetite.
An agreement is necessary for Greece to secure its next tranche of bailout funds in order to avoid a default when a EUR14.5 billion bond repayment comes due on March 20.
European Union leaders were expected to finalize discussions on a pact aimed at enforcing deficit control measures in the region and to sign off on a EUR500 billion permanent rescue fund to be set up this year.
Elsewhere, the loonie was higher against the euro with EUR/CAD shedding 0.55%, to hit 1.3170.
Also Thursday, crude oil for delivery in March declined 0.53% to trade at USD99.03 a barrel on the New York Mercantile Exchange.
Raw materials, including oil account for about half of Canada’s export revenue.