Investing.com - The U.S. dollar was higher against its Canadian counterpart on Monday, as demand for higher-yielding assets was hit by fears over the possible implications of a Greek exit from the euro zone.
USD/CAD hit 1.0053 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0033, gaining 0.28%.
The pair was likely to find support at 0.9991, the session low and resistance at 1.0062, the high of May 9 and a more than three-month high.
Speculation over the possibility of a Greek exit from the euro zone intensified, as talks aimed at forming a coalition government remained at an impasse.
The deadlock fueled fears that a fresh round of elections is becoming inevitable and cast doubts over the country’s ability to uphold its fiscal commitments.
Meanwhile, concerns over the health of Spain’s banking system persisted, pushing the yield on Spanish 10-year bonds to 6.27%, the highest level since December, after an auction of government bonds earlier saw the country’s short-term borrowing costs rise.
Adding to weak sentiment, China’s central bank announced Monday that it is cutting the reserve requirement ratios for banks, in an attempt to bolster economic growth.
The Canadian dollar also came under pressure from sharply lower oil prices, as crude oil for delivery in June dropped 1.90% on the New York Mercantile Exchange, to trade at USD94.33 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 shedding 0.33% to hit 1.2881.
Later Monday, European Union finance ministers were to hold talks in Brussels. In addition, Greece’s president was due to hold last-ditch cross party talks in an attempt to avert fresh elections.
USD/CAD hit 1.0053 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0033, gaining 0.28%.
The pair was likely to find support at 0.9991, the session low and resistance at 1.0062, the high of May 9 and a more than three-month high.
Speculation over the possibility of a Greek exit from the euro zone intensified, as talks aimed at forming a coalition government remained at an impasse.
The deadlock fueled fears that a fresh round of elections is becoming inevitable and cast doubts over the country’s ability to uphold its fiscal commitments.
Meanwhile, concerns over the health of Spain’s banking system persisted, pushing the yield on Spanish 10-year bonds to 6.27%, the highest level since December, after an auction of government bonds earlier saw the country’s short-term borrowing costs rise.
Adding to weak sentiment, China’s central bank announced Monday that it is cutting the reserve requirement ratios for banks, in an attempt to bolster economic growth.
The Canadian dollar also came under pressure from sharply lower oil prices, as crude oil for delivery in June dropped 1.90% on the New York Mercantile Exchange, to trade at USD94.33 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 shedding 0.33% to hit 1.2881.
Later Monday, European Union finance ministers were to hold talks in Brussels. In addition, Greece’s president was due to hold last-ditch cross party talks in an attempt to avert fresh elections.