Investing.com - The U.S. dollar fell against its Canadian counterpart on Monday, erasing earlier gains as market sentiment improved after a meeting of French and German leaders on tighter fiscal policy in the euro zone.
USD/CAD hit 1.0254 during early U.S. trade, the daily low; the pair subsequently consolidated at 1.0261, shedding 0.22%.
The pair was likely to find support at 1.0208, the low of December 21 and resistance at 1.0308, the day’s high.
After meeting with French President Nicolas Sarkozy in Berlin earlier, German Chancellor Angela Merkel said she was optimistic that the European Union will be able to sign off its fiscal pact by the end of January.
Monday’s talks were closely watched as European leaders failed last year to come up with effective solutions to end Greece’s financial woes and a widening sovereign debt crisis in the single currency bloc that is threatening the global economy.
Sentiment was hit earlier by concerns over the ability of troubled euro zone nations to fulfill their sovereign funding needs continued to weigh, ahead of government debt auctions by Spain and Italy later in the week.
Meanwhile, the loonie found support as crude oil for delivery in February advanced 0.22% to trade at USD101.78 a barrel on the New York Mercantile Exchange.
Raw materials, including oil account for about half of Canada’s export revenue.
Elsewhere, the Canadian dollar was fractionally lower against the euro with EUR/CAD edging up 0.04%, to hit 1.3087.
Also Monday, official data showed that the number of new building permits issued in Canada declined more-than-expected in November, falling 3.6% after a surge of 11.6% the previous month.
Analysts had expected new building permits to fall 3.1% in November.
USD/CAD hit 1.0254 during early U.S. trade, the daily low; the pair subsequently consolidated at 1.0261, shedding 0.22%.
The pair was likely to find support at 1.0208, the low of December 21 and resistance at 1.0308, the day’s high.
After meeting with French President Nicolas Sarkozy in Berlin earlier, German Chancellor Angela Merkel said she was optimistic that the European Union will be able to sign off its fiscal pact by the end of January.
Monday’s talks were closely watched as European leaders failed last year to come up with effective solutions to end Greece’s financial woes and a widening sovereign debt crisis in the single currency bloc that is threatening the global economy.
Sentiment was hit earlier by concerns over the ability of troubled euro zone nations to fulfill their sovereign funding needs continued to weigh, ahead of government debt auctions by Spain and Italy later in the week.
Meanwhile, the loonie found support as crude oil for delivery in February advanced 0.22% to trade at USD101.78 a barrel on the New York Mercantile Exchange.
Raw materials, including oil account for about half of Canada’s export revenue.
Elsewhere, the Canadian dollar was fractionally lower against the euro with EUR/CAD edging up 0.04%, to hit 1.3087.
Also Monday, official data showed that the number of new building permits issued in Canada declined more-than-expected in November, falling 3.6% after a surge of 11.6% the previous month.
Analysts had expected new building permits to fall 3.1% in November.