Investing.com - The U.S. dollar slumped to a two-day low against its Canadian counterpart on Monday, amid concerns that the Federal Reserve may embark on a third round of monetary easing, following dovish remarks by central bank Chairman Ben Bernanke.
USD/CAD hit 0.9926 during early U.S. trade, the pair’s lowest since March 22; the pair subsequently consolidated at 0.9935, shedding 0.42%.
The pair was likely to find support at 0.9874, the low of March 21 and resistance at 0.9998, the session high.
Sentiment on the greenback was hit after Fed Chairman Ben Bernanke said in a speech that further monetary accommodation is needed to bring about big gains in the U.S. jobs market, which he described as “far from normal,” despite a recent improvement.
In the euro zone, German Chancellor Angela Merkel said earlier that Germany would be prepared to allow running the region’s two bailout funds in parallel, which would give a total fund of EUR700 billion to combat the debt crisis in the single currency bloc.
But investors remained cautious amid concerns over the threat of sovereign debt contagion from Spain, following a warning by Italy’s prime minister over the weekend.
The loonie, as the Canadian dollar is also known, was fractionally higher against the euro, with EUR/CAD dipping 0.06% to hit 1.3232.
Later Monday, the U.S. was to publish industry data on pending home sales, while European Central Bank President Mario Draghi was to speak.
USD/CAD hit 0.9926 during early U.S. trade, the pair’s lowest since March 22; the pair subsequently consolidated at 0.9935, shedding 0.42%.
The pair was likely to find support at 0.9874, the low of March 21 and resistance at 0.9998, the session high.
Sentiment on the greenback was hit after Fed Chairman Ben Bernanke said in a speech that further monetary accommodation is needed to bring about big gains in the U.S. jobs market, which he described as “far from normal,” despite a recent improvement.
In the euro zone, German Chancellor Angela Merkel said earlier that Germany would be prepared to allow running the region’s two bailout funds in parallel, which would give a total fund of EUR700 billion to combat the debt crisis in the single currency bloc.
But investors remained cautious amid concerns over the threat of sovereign debt contagion from Spain, following a warning by Italy’s prime minister over the weekend.
The loonie, as the Canadian dollar is also known, was fractionally higher against the euro, with EUR/CAD dipping 0.06% to hit 1.3232.
Later Monday, the U.S. was to publish industry data on pending home sales, while European Central Bank President Mario Draghi was to speak.