Investing.com - The U.S. dollar was lower against its Canadian counterpart on Monday, as hopes of progress in dealing with the debt crisis in the euro zone boosted demand for riskier assets.
USD/CAD hit 1.0140 during early U.S. trade, the daily low; the pair subsequently consolidated at 1.0156, shedding 0.37%.
The pair was likely to find support at 1.0079, the low of December 2 and resistance at 1.0222, the high of December 1.
Risk sentiment strengthened ahead of a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy on Monday, as they were to discuss a plan for stricter enforcement of the region’s deficit rules, ahead of Friday’s key European Union summit.
Investor confidence improved earlier after Italian Prime Minister Mario Monti unveiled a EUR30 billion package of austerity measures, which includes raising taxes and increasing the pension age. The plan was due to be presented before the Italian Chamber of Deputies later in the day.
Ireland and Greece were also scheduled to present austerity budget plans to their respective parliaments this week.
Meanwhile, the loonie also found support as crude oil for delivery in January rose 1.04% to trade at USD102.02 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 down against the euro with EUR/CAD edging up 0.04%, to hit 1.3658.
Later in the day, the U.S. Institute of Supply Management was to release a report on service sector activity. The U.S. was also to publish government data on factory orders.
USD/CAD hit 1.0140 during early U.S. trade, the daily low; the pair subsequently consolidated at 1.0156, shedding 0.37%.
The pair was likely to find support at 1.0079, the low of December 2 and resistance at 1.0222, the high of December 1.
Risk sentiment strengthened ahead of a meeting between German Chancellor Angela Merkel and French President Nicolas Sarkozy on Monday, as they were to discuss a plan for stricter enforcement of the region’s deficit rules, ahead of Friday’s key European Union summit.
Investor confidence improved earlier after Italian Prime Minister Mario Monti unveiled a EUR30 billion package of austerity measures, which includes raising taxes and increasing the pension age. The plan was due to be presented before the Italian Chamber of Deputies later in the day.
Ireland and Greece were also scheduled to present austerity budget plans to their respective parliaments this week.
Meanwhile, the loonie also found support as crude oil for delivery in January rose 1.04% to trade at USD102.02 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 down against the euro with EUR/CAD edging up 0.04%, to hit 1.3658.
Later in the day, the U.S. Institute of Supply Management was to release a report on service sector activity. The U.S. was also to publish government data on factory orders.