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Forex - USD/CAD hovers near 9-month trough in early trade

Published 05/02/2016, 09:27 AM
© Reuters.  Greenback remains under pressure vs. loonie amid strong oil prices
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Investing.com - The U.S. dollar was lower against its Canadian counterpart on Monday, hovering close to a nine-month trough as last week’s policy statements by the Bank of Japan and the Federal Reserve still weighed heavily on the greenback.

USD/CAD hit 1.2513 during early U.S. trade, the session low; the pair subsequently consolidated at 1.2521, shedding 0.26%.

The pair was likely to find support at 1.2510, Friday’s low and a nine-month low and resistance at 1.2608, the high of April 28.

The yen remained broadly supported after the BoJ chose on last Thursday to hold its monetary policy, defying market expectations for additional monetary easing.

The decision came a day after the Fed kept interest rates on hold last week and indicated that any future interest rate hikes would be data dependent.

The greenback was also hit after data last Thursday showed that the U.S. economy grew at the slowest rate in two years in the first quarter, with gross domestic product increasing just 0.5% from a year earlier.

Meanwhile, the commodity-related Canadian dollar remained supported as oil prices held above $45 a barrel on Monday.

The loonie was steady against the euro, with EUR/CAD at 1.4371.

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