Investing.com - The U.S. dollar ticked up and down between small gains and losses against its Canadian counterpart in quiet trade on Tuesday, as investors remained wary amid growing concerns over Spain’s rising borrowing costs and its weakening banking sector.
USD/CAD hit 1.0264 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0232, slipping 0.05%.
The pair was likely to find support at 1.0202, the low of March 23 and resistance at 1.0270, Monday’s high.
Market participants remained jittery amid concerns over the situation in Spain, where rising bond yields, the growing costs of bank rescues and a recession hit economy fuelled fears that Madrid will be forced to seek an international bailout.
The yield on Spanish 10-year bonds eased to 6.45% earlier, hovering just below the 2012 high of 6.50% hit Monday after the government announced that it was to recapitalize one of the country’s largest commercial lenders.
But investor sentiment found some support after Chinese media reports fuelled speculation that Beijing may soon launch an economic stimulus program, to counter signs of a slowdown in growth in the world’s second largest economy.
The Canadian dollar also found support from stronger crude oil prices, as crude futures for delivery in July rose 0.69% on the New York Mercantile Exchange, to trade at USD91.48 a barrel.
Raw materials, including oil account for about half of Canada’s export revenue.
The loonie, as the Canadian dollar is sometimes known, was higher against the euro, with EUR/CAD slipping 0.13% to hit 1.2822.
Also Tuesday, a report showed that the S&P/Case-Shiller U.S. home price index fell in line with expectations in March, declining for the 21st consecutive month.
Standard & Poor’s with Case-Shiller said its house price index fell at an annualized rate of 2.6% in March from a year earlier, in line with expectations.
U.S. home prices in February fell by an unrevised 3.5%.
USD/CAD hit 1.0264 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0232, slipping 0.05%.
The pair was likely to find support at 1.0202, the low of March 23 and resistance at 1.0270, Monday’s high.
Market participants remained jittery amid concerns over the situation in Spain, where rising bond yields, the growing costs of bank rescues and a recession hit economy fuelled fears that Madrid will be forced to seek an international bailout.
The yield on Spanish 10-year bonds eased to 6.45% earlier, hovering just below the 2012 high of 6.50% hit Monday after the government announced that it was to recapitalize one of the country’s largest commercial lenders.
But investor sentiment found some support after Chinese media reports fuelled speculation that Beijing may soon launch an economic stimulus program, to counter signs of a slowdown in growth in the world’s second largest economy.
The Canadian dollar also found support from stronger crude oil prices, as crude futures for delivery in July rose 0.69% on the New York Mercantile Exchange, to trade at USD91.48 a barrel.
Raw materials, including oil account for about half of Canada’s export revenue.
The loonie, as the Canadian dollar is sometimes known, was higher against the euro, with EUR/CAD slipping 0.13% to hit 1.2822.
Also Tuesday, a report showed that the S&P/Case-Shiller U.S. home price index fell in line with expectations in March, declining for the 21st consecutive month.
Standard & Poor’s with Case-Shiller said its house price index fell at an annualized rate of 2.6% in March from a year earlier, in line with expectations.
U.S. home prices in February fell by an unrevised 3.5%.