Investing.com - The U.S. dollar hit a three-month high against the Canadian dollar on Tuesday, as uncertainty over a delayed bailout payment for Greece sapped investor appetite for risk sensitive assets.
USD/CAD hit 1.0034 during early U.S. trade, the pair’s highest since August 3; the pair subsequently consolidated at 1.0018, gaining 0.21%.
The pair was likely to find support at 0.9984, Monday’s low and resistance at 1.0075, the high of August 3.
Investors remained wary over a delayed bailout payment for Greece amid disagreements between officials from the International Monetary Fund and Europe on how best to reduce Greece’s debt to manageable levels.
A decision on unlocking a EUR31.5 billion bailout installment has been postponed until 20 November.
Also Tuesday, data showed that the ZEW index of German economic sentiment dropped unexpectedly in November, adding to concerns over a slowdown in the euro zone’s largest economy.
Meanwhile, ongoing concerns over automatic tax hikes and spending cuts due to come into effect in the U.S. on January 1, which could threaten U.S. and global growth supported demand for the greenback.
The loonie, as the Canadian dollar is also known, was little changed against the euro, with EUR/CAD inching up 0.06% to 1.2715.
Later Tuesday, the U.S. was to release official data on the federal budget balance.
USD/CAD hit 1.0034 during early U.S. trade, the pair’s highest since August 3; the pair subsequently consolidated at 1.0018, gaining 0.21%.
The pair was likely to find support at 0.9984, Monday’s low and resistance at 1.0075, the high of August 3.
Investors remained wary over a delayed bailout payment for Greece amid disagreements between officials from the International Monetary Fund and Europe on how best to reduce Greece’s debt to manageable levels.
A decision on unlocking a EUR31.5 billion bailout installment has been postponed until 20 November.
Also Tuesday, data showed that the ZEW index of German economic sentiment dropped unexpectedly in November, adding to concerns over a slowdown in the euro zone’s largest economy.
Meanwhile, ongoing concerns over automatic tax hikes and spending cuts due to come into effect in the U.S. on January 1, which could threaten U.S. and global growth supported demand for the greenback.
The loonie, as the Canadian dollar is also known, was little changed against the euro, with EUR/CAD inching up 0.06% to 1.2715.
Later Tuesday, the U.S. was to release official data on the federal budget balance.