Investing.com - The U.S. dollar rose to session highs against the Canadian dollar on Monday after data showed that Canadian building permits fell more than expected in August, but concerns over a U.S. political deadlock held the greenback in check.
USD/CAD hit 1.0334 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0322, gaining 0.26%.
The pair was likely to find support at 1.0274, the low of September 30 and resistance at 1.0355, the high of October 2.
The Canadian dollar touched session lows after Statistics Canada said the total value of building permits issued in Canada was down 21.1% in August, following an upwardly revised increase of 21.4% in July.
Analysts had expected building permits to decline by 7%.
The greenback remained under pressure as the U.S. government shutdown entered a second week with few signs of progress towards a resolution, fuelling fears over the risk of a possible U.S. debt default.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the government borrowing limit unless the Obama administration agrees to talks aimed at reducing the deficit.
The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the U.S. could risk an unprecedented default.
The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.39% to 1.4007.
In the euro zone, data released on Monday showed that the economy grew by 0.3% in the second quarter, unchanged from a preliminary estimate and in line with forecasts.
A separate report showed that the Sentix index of euro zone investor confidence dropped to 6.1, from 6.5 in September as concerns over the political impasse in the U.S. hurt sentiment. Analysts had expected the index to rise to 10.6 this month.
USD/CAD hit 1.0334 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0322, gaining 0.26%.
The pair was likely to find support at 1.0274, the low of September 30 and resistance at 1.0355, the high of October 2.
The Canadian dollar touched session lows after Statistics Canada said the total value of building permits issued in Canada was down 21.1% in August, following an upwardly revised increase of 21.4% in July.
Analysts had expected building permits to decline by 7%.
The greenback remained under pressure as the U.S. government shutdown entered a second week with few signs of progress towards a resolution, fuelling fears over the risk of a possible U.S. debt default.
Republican House Speaker John Boehner said Sunday the House will not support bills to fully reopen the government or increase the government borrowing limit unless the Obama administration agrees to talks aimed at reducing the deficit.
The comments fuelled fears that the political deadlock in Washington will not be resolved by October 17, the date which the Treasury Department has estimated the U.S. could risk an unprecedented default.
The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.39% to 1.4007.
In the euro zone, data released on Monday showed that the economy grew by 0.3% in the second quarter, unchanged from a preliminary estimate and in line with forecasts.
A separate report showed that the Sentix index of euro zone investor confidence dropped to 6.1, from 6.5 in September as concerns over the political impasse in the U.S. hurt sentiment. Analysts had expected the index to rise to 10.6 this month.