Forex - USD/CAD lower as U.S. markets closed for holiday

Published 05/28/2012, 09:35 AM
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Investing.com - The U.S. dollar was lower against its Canadian counterpart on Monday, and looked likely to remain in a narrow range as markets in the U.S. were closed for the Memorial Day holiday.

USD/CAD hit 1.0224 during European afternoon trade, the pair’s lowest since May 23; the pair subsequently consolidated at 1.0253, shedding 0.39%.

The pair was likely to find support at 1.0202, the low of May 23 and resistance at 1.0270, the session high.

Demand for the safe haven greenback was hit earlier as fears over the possibility of a Greek exit from the euro zone subsided after weekend opinion polls showed increasing support for pro-bailout party New Democracy ahead of elections due to be held on June 17.

But market sentiment remained fragile amid uncertainty over the outcome of the June elections, while fears over the health of Spain’s banking sector and the country’s rising borrowing costs also weighed.

Spain’s government announced Sunday that it was to recapitalize one of the country’s largest commercial lenders, fuelling fresh fears that the rising cost of bank rescues could force Madrid into seeking an international bailout.

The loonie, as the Canadian dollar is sometimes known, was higher against the euro, with EUR/CAD slipping 0.19% to hit 1.2860.

Trade looked likely to remain quiet on Monday, with neither Canada nor the U.S. scheduled to release any major economic data, while the U.S. holiday meant liquidity was likely to remain thin.


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