Investing.com - The U.S. dollar rose against its Canadian counterpart on Monday, as dropping oil prices continued to weigh on the commodity-related Canadian currency.
USD/CAD hit 1.3978 during early U.S. trade, the pair’s highest since February 3; the pair subsequently consolidated at 1.3949, adding 0.23%.
The pair was likely to find support at 1.3704, Friday’s low and resistance at 1.4103, the high of February 3.
Oil prices resumed their downward trend on Monday, as hopes faded for a deal between major producers to curb a massive supply glut.
Meanwhile, Statistics Canada reported that building permits increased by 11.3% in December, exceeding expectations for a 5.6% gain. Building permits dropped by 19.9% in November, whose figure was revised from a previously estimated 19.6% decline.
The greenback remained supported after a pick-up in wage growth to a one year high bolstered the outlook for inflation and increased the likelihood that the Federal Reserve could make further rate hikes in 2016.
The loonie was higher against the euro, with EUR/CAD shedding 0.19% to 1.5497.