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Forex - USD/CAD lower as oil prices stay supported on Libya

Published 03/29/2011, 10:16 AM
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Investing.com – The U.S. dollar was lower against its Canadian counterpart on Tuesday, as crude oil, Canada’s largest export, remained well supported amid concerns over how quickly Libyan oil could return to markets.

USD/CAD hit 0.9744 during European afternoon trade, the daily low; the pair subsequently consolidated at 0.9760, shedding 0.18%.

The pair was likely to find support at 0.9730, the low of March 24 and resistance at 0.9822, Monday’s high.

Crude oil contracts for delivery in May were trading at USD 103.88 a barrel on the New York Mercantile Exchange, after peaking at USD 103.96 earlier.

Earlier Tuesday, a Libyan rebel representative said oil exports could resume in less than a week but the European Commission said current sanctions apply to all Libyan oil exports, including exports sent from opposition-controlled areas.

Elsewhere, a U.S. report showed earlier that the S&P/Case-Shiller house price index fell for the seventh consecutive month in January, while a separate report showed that U.S. consumer confidence fell more-than-expected in March.

Meanwhile, the loonie was up against the euro, with EUR/CAD slipping 0.18% to hit 1.3749.

Also Tuesday, St. Louis Federal Reserve President James Bullard said U.S. policymakers may not be willing or able to wait for global uncertainties to be resolved before they begin normalizing monetary policy and warned that waiting too long to tighten policy may produce "a lot of inflation" in the United States and around the world.



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