Forex - USD/CAD little changed in thin, holiday trade

Published 09/03/2012, 09:28 AM
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Investing.com - The U.S. dollar was little changed against the Canadian dollar in thin trade on Monday, with markets in both countries closed for the Labor Day holiday.

USD/CAD hit 0.9852 during European afternoon trade, the session low; the pair subsequently consolidated at 0.9863, edging up 0.03%.

The pair was likely to find support at 0.9841, the low of August 21 and a three-and-a-half month low and resistance at 0.9873, the session high.

The greenback remained under pressure after Federal Reserve Chairman Ben Bernanke said Friday that the Fed would act as needed to strengthen the U.S. economic recovery, but he stopped short of indicating that a fresh round of stimulus is imminent.

Speaking at the Fed’s annual symposium in Jackson Hole, Wyoming, Bernanke said the persistently high rate of unemployment was a “grave concern” and added that the bank’s easing program had been effective in providing “meaningful support" to the recovery.

Market sentiment remained cautious ahead of the European Central Bank's policy setting meeting on Thursday, amid speculation that the bank is working on policy measures to help stabilize the euro zone's sovereign debt markets.

Investors were also looking ahead to U.S. government data on non-farm payrolls on Friday, to see if the labor market has improved.

The loonie, as the Canadian dollar is also known, was steady against the euro, with EUR/CAD dipping 0.04% to 1.2396.

Trade looked likely to remain subdued on Monday, with no major economic data releases on the calendar.



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