Investing.com - The U.S. dollar fell to five-week lows against the Canadian dollar on Monday after Larry Summers pulled out of the race to be the next head of the Federal Reserve, while weak U.S. manufacturing data also weighed.
USD/CAD hit 1.0283 during early U.S. trade, the lowest since August 12; the pair subsequently consolidated at 1.0300, shedding 0.54%.
The pair was likely to find support at 1.0273, the low of August 9 and resistance at 1.0320, the session high.
Risk appetite sharpened after Summers’ withdrew from the race to succeed Ben Bernanke as the next Fed chairman. Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Investors were also awaiting the outcome of the upcoming Fed policy meeting, which concludes on Wednesday.
Data released on Monday showed that the Empire State manufacturing index fell to a four-month low of 6.29 in September from a reading of 8.24 in August. Analysts had expected the index to rise to 9.2.
The soft data added to doubts over whether the Fed will decide to start unwinding its USD85 billion-a-month bond buying program this month.
A separate report showed that U.S. industrial production rose 0.4% in August, in line with expectations after remaining flat in July.
The loonie, as the Canadian dollar is also known, was little changed against the euro, with EUR/CAD inching up 0.03% to 1.3772.
European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains “fragile” and reiterated that interest rates will remain at current or lower levels for an “extended period”. The comments came during a speech in Berlin.
USD/CAD hit 1.0283 during early U.S. trade, the lowest since August 12; the pair subsequently consolidated at 1.0300, shedding 0.54%.
The pair was likely to find support at 1.0273, the low of August 9 and resistance at 1.0320, the session high.
Risk appetite sharpened after Summers’ withdrew from the race to succeed Ben Bernanke as the next Fed chairman. Summers’ was perceived as being likely to unwind economic stimulus measures more aggressively than his main rival for the post, Janet Yellen.
Investors were also awaiting the outcome of the upcoming Fed policy meeting, which concludes on Wednesday.
Data released on Monday showed that the Empire State manufacturing index fell to a four-month low of 6.29 in September from a reading of 8.24 in August. Analysts had expected the index to rise to 9.2.
The soft data added to doubts over whether the Fed will decide to start unwinding its USD85 billion-a-month bond buying program this month.
A separate report showed that U.S. industrial production rose 0.4% in August, in line with expectations after remaining flat in July.
The loonie, as the Canadian dollar is also known, was little changed against the euro, with EUR/CAD inching up 0.03% to 1.3772.
European Central Bank President Mario Draghi said Monday that the economic recovery in the euro zone remains “fragile” and reiterated that interest rates will remain at current or lower levels for an “extended period”. The comments came during a speech in Berlin.