Investing.com – The U.S. dollar was trading close to a three-year low against its Canadian counterpart on Monday, as fighting close to some of Libya's key oil producing areas saw oil prices rally to a 29-month high.
USD/CAD hit 0.9700 during European afternoon trade, the pair’s lowest since March 1; the pair subsequently consolidated at 0.9707, shedding 0.25%.
The pair was likely to find short-term support at 0.9681, the low of March 1 and a 40-month low and resistance at 0.9742, Friday’s high.
Earlier in the day, crude futures for delivery in April were trading at USD105.42 a barrel on the New York Mercantile Exchange, after peaking at USD106.93, while Brent oil surged above USD117.
The Canadian dollar closely tracks changes in the price of crude oil as Canada is a major exporter of the commodity.
The loonie shrugged off official data showing that the number of new building permits issued in Canada dropped unexpectedly in January. Permits in Canada declined by 5.1% from December. Analysts had expected permits to increase by 1%.
The loonie was also higher against the euro, with EUR/CAD shedding 0.20% to hit 1.3586.
Later Monday, Federal Reserve Bank of Atlanta President Dennis Lockhart was due to speak in Washington, while the president of the Federal Reserve Bank of Chicago, Charles Evans, was also to deliver a speech.
USD/CAD hit 0.9700 during European afternoon trade, the pair’s lowest since March 1; the pair subsequently consolidated at 0.9707, shedding 0.25%.
The pair was likely to find short-term support at 0.9681, the low of March 1 and a 40-month low and resistance at 0.9742, Friday’s high.
Earlier in the day, crude futures for delivery in April were trading at USD105.42 a barrel on the New York Mercantile Exchange, after peaking at USD106.93, while Brent oil surged above USD117.
The Canadian dollar closely tracks changes in the price of crude oil as Canada is a major exporter of the commodity.
The loonie shrugged off official data showing that the number of new building permits issued in Canada dropped unexpectedly in January. Permits in Canada declined by 5.1% from December. Analysts had expected permits to increase by 1%.
The loonie was also higher against the euro, with EUR/CAD shedding 0.20% to hit 1.3586.
Later Monday, Federal Reserve Bank of Atlanta President Dennis Lockhart was due to speak in Washington, while the president of the Federal Reserve Bank of Chicago, Charles Evans, was also to deliver a speech.