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Forex - USD/CAD moves higher in risk-off trade

Published 02/06/2013, 09:25 AM
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar was higher against the Canadian dollar on Wednesday, as investor jitters ahead of the outcome of Thursday’s European Central Bank supported safe haven demand.

USD/CAD hit 0.9989 during early U.S. trade, the session high; the pair subsequently consolidated at 0.9979, rising 0.25%.

The pair was likely to find support at 0.9947, the session low and resistance at 1.0003, the high of February 1.

Market sentiment remained subdued ahead of the outcome of Thursday’s ECB meeting amid wariness that President Mario Draghi could express concerns over the impact of the euro’s recent gains on the region’s economic recovery.

The Canadian dollar also came under pressure from sharply lower crude oil prices, with crude futures for delivery in March falling 1.29% on the New York Mercantile Exchange to trade at USD95.40 a barrel.

Raw materials, including oil account for about half of Canada’s export revenue.

The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.26% to 1.3486.

Canada was to release a report on the Ivey PMI later in the trading day, while the U.S. was to release government data on crude oil stockpiles.




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