Investing.com - The U.S. dollar fell to session lows against the Canadian dollar on Monday after data showed that the Canadian economy returned to growth in July, while concerns over a looming U.S. government shutdown also weighed.
USD/CAD hit 1.0277 during early U.S. trade, the lowest since September 24; the pair subsequently consolidated at 1.0288, shedding 0.17%.
The pair was likely to find support at 1.0261, the low of September 20 and resistance at 1.0331, Friday’s high.
The Canadian dollar gained ground after Statistics Canada said gross domestic product expanded by a seasonally adjusted 0.6% in July, recovering from a 0.5% contraction in June. Economists had forecast growth of 1%.
The Canadian economy expanded 1.4% on a year-over-year basis, beating forecasts for an increase of 1.3%, following growth of 1.1% in the preceding month.
Political wrangling in Washington over funding for President Barack Obama’s healthcare law continued over the weekend, fuelling fears over a possible government shutdown.
Congress must pass a short-term budget by midnight on Monday in order to keep the government open.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
The loonie, as the Canadian dollar is also known, was fractionally higher against the euro, with EUR/CAD dipping 0.05% to 1.3929.
The euro found support following reports that Silvio Berlusconi was facing dissent within his political party after he announced Saturday that he was pulling his ministers out of Italian Prime Minister Enrico Letta’s coalition government and calling for fresh elections.
USD/CAD hit 1.0277 during early U.S. trade, the lowest since September 24; the pair subsequently consolidated at 1.0288, shedding 0.17%.
The pair was likely to find support at 1.0261, the low of September 20 and resistance at 1.0331, Friday’s high.
The Canadian dollar gained ground after Statistics Canada said gross domestic product expanded by a seasonally adjusted 0.6% in July, recovering from a 0.5% contraction in June. Economists had forecast growth of 1%.
The Canadian economy expanded 1.4% on a year-over-year basis, beating forecasts for an increase of 1.3%, following growth of 1.1% in the preceding month.
Political wrangling in Washington over funding for President Barack Obama’s healthcare law continued over the weekend, fuelling fears over a possible government shutdown.
Congress must pass a short-term budget by midnight on Monday in order to keep the government open.
Republican opposition to the funding of the Affordable Care Act has created a standoff with the White House and the Democratic-controlled Senate, which have both said they will not support any budget bill that defunds or amends Obamacare.
The loonie, as the Canadian dollar is also known, was fractionally higher against the euro, with EUR/CAD dipping 0.05% to 1.3929.
The euro found support following reports that Silvio Berlusconi was facing dissent within his political party after he announced Saturday that he was pulling his ministers out of Italian Prime Minister Enrico Letta’s coalition government and calling for fresh elections.