Investing.com - The U.S. dollar climbed above parity against its Canadian counterpart on Wednesday for the first time in four sessions as ongoing concerns over the euro zone and soft Chinese manufacturing data weighed on demand for higher-yielding assets.
USD/CAD hit 1.0013 during early U.S. trade, the pair’s highest since February 16; the pair subsequently consolidated at 1.0007, gaining 0.39%.
The pair was likely to find support at 0.9924, Tuesday’s low and resistance at 1.0050, the high of February 16.
Market sentiment remained soft amid continued uncertainty over whether a second EUR130 billion bailout for Greece will be enough to resolve the country’s fiscal woes as the economic situation continues to deteriorate.
Sentiment was also hit after data showed that manufacturing activity in the euro zone improved less-than-expected in February, while service sector activity contracted unexpectedly, underlining concerns over the impact of the region’s debt crisis on the economic outlook.
Earlier Wednesday, preliminary data showed that China’s manufacturing sector contracting for a fourth straight month in February, adding to concerns over a slowdown in the world’s second largest economy.
The Canadian dollar also came under pressure as the broadly stronger greenback pushed oil prices lower, with crude oil for delivery in April losing 0.24% on the New York Mercantile Exchange to trade at USD106.00 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 lower against the euro, with EUR/CAD gaining 0.36% to hit 1.3240.
Later in the day, the U.S. was to publish industry data on existing home sales.
USD/CAD hit 1.0013 during early U.S. trade, the pair’s highest since February 16; the pair subsequently consolidated at 1.0007, gaining 0.39%.
The pair was likely to find support at 0.9924, Tuesday’s low and resistance at 1.0050, the high of February 16.
Market sentiment remained soft amid continued uncertainty over whether a second EUR130 billion bailout for Greece will be enough to resolve the country’s fiscal woes as the economic situation continues to deteriorate.
Sentiment was also hit after data showed that manufacturing activity in the euro zone improved less-than-expected in February, while service sector activity contracted unexpectedly, underlining concerns over the impact of the region’s debt crisis on the economic outlook.
Earlier Wednesday, preliminary data showed that China’s manufacturing sector contracting for a fourth straight month in February, adding to concerns over a slowdown in the world’s second largest economy.
The Canadian dollar also came under pressure as the broadly stronger greenback pushed oil prices lower, with crude oil for delivery in April losing 0.24% on the New York Mercantile Exchange to trade at USD106.00 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 lower against the euro, with EUR/CAD gaining 0.36% to hit 1.3240.
Later in the day, the U.S. was to publish industry data on existing home sales.