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Forex - USD/CAD Rises as Global Fears Continue to Ease

Published 09/12/2017, 09:31 AM
© Reuters.  Greenback gains ground vs. loonie but upside limited
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Investing.com - The U.S. dollar rose against its Canadian counterpart on Tuesday, as sentiment on the greenback improved after Hurricane Irma appeared to have caused less damage than expected and in the absence of any new provocations from North Korea.

USD/CAD gained 0.30% to trade at 1.2150 by 09:30 a.m. ET (13:30 GMT), but was stilll within close distance of Friday's 28-month low of 1.2059.

Market participants had braced for additional provocations from North Korea on September 9, as the State celebrated its founding day. But Pyongyang marked the anniversary without further missile or nuclear tests.

In response to North Korea's sixth nuclear test, the U.N. Security Council voted unanimously on Monday to step up sanctions on the peninsula. Its textile exports are now banned and fuel supplies to Pyongyang are capped.

It was the ninth sanctions resolution unanimously adopted by the Security Council since 2006 over North Korea’s ballistic missile and nuclear programs.

On the other hand, Hurricane Irma continued to hammer the South East of the U.S. on Tuesday, but it was losing strength and was downgraded to a tropical storm.

About 7.3 million homes and businesses were without power in Florida, Georgia, South Carolina and Alabama, according to state officials and utilities on Monday.

The commodity-related Canadian dollar found some support however, as oil prices bounced back ahead of upcoming reports on U.S. stockpiles due later Tuesday and on Wednesday.

The loonie was lower against the euro, with EUR/CAD adding 0.19% to 1.4506.

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