Investing.com - The U.S. dollar was little changed against its Canadian counterpart on Monday, trading close to a six-week low, as doubts over fresh measures to combat the debt crisis in the euro zone dampened demand for riskier assets.
USD/CAD hit 1.0198 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0164, dipping 0.02%.
The pair was likely to find support at 1.0154, the session low and a six-week low and resistance at 1.0197, the session high.
The U.S. dollar weakened broadly on Friday, after European leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt, and to purchase government debt in order to keep borrowing costs down.
Leaders also agreed to set up a joint banking supervisory body for the euro area.
But investor sentiment cooled amid questions over the long-term effectiveness of the measures in addressing the root causes of the euro zone’s debt crisis and uncertainty over how and when the measures can be implemented.
Earlier Monday, Finland and the Netherland’s reiterated their opposition to using euro zone bailout funds to purchase government bonds.
Trade in the pair was expected to remain subdued as markets in Canada were to remain closed for the Canada Day holiday.
The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.52% to trade at 1.2803.
Later in the session, the Institute for Supply Management was to release a report on activity in the U.S. manufacturing sector.
USD/CAD hit 1.0198 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0164, dipping 0.02%.
The pair was likely to find support at 1.0154, the session low and a six-week low and resistance at 1.0197, the session high.
The U.S. dollar weakened broadly on Friday, after European leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt, and to purchase government debt in order to keep borrowing costs down.
Leaders also agreed to set up a joint banking supervisory body for the euro area.
But investor sentiment cooled amid questions over the long-term effectiveness of the measures in addressing the root causes of the euro zone’s debt crisis and uncertainty over how and when the measures can be implemented.
Earlier Monday, Finland and the Netherland’s reiterated their opposition to using euro zone bailout funds to purchase government bonds.
Trade in the pair was expected to remain subdued as markets in Canada were to remain closed for the Canada Day holiday.
The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.52% to trade at 1.2803.
Later in the session, the Institute for Supply Management was to release a report on activity in the U.S. manufacturing sector.