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Forex - USD/CAD in tight range in muted trade

Published 03/19/2012, 10:02 AM
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Investing.com - The U.S. dollar was moving in a narrow range against its Canadian counterpart on Monday, as the Canadian dollar shrugged off weak wholesale sales data in subdued trade.

USD/CAD hit 0.9899 during U.S. morning trade, the session low; the pair subsequently consolidated at 0.9914, dipping 0.04%.

The pair was likely to find support at 0.9872, the low of March 9 and resistance at 0.9947, last Thursday’s high.

The Canadian dollar was largely unchanged after Statistics Canada said wholesale sales declined unexpectedly in January, falling 1.0% and erasing the previous month’s 0.9% gain. It was the second decline in three months following six consecutive monthly gains.

In the U.S., Federal Reserve Bank of New York President William Dudley said recent economic data indicated that the economic recovery may be gaining traction, but said that the bank would continued to be guided by data when making future monetary policy decisions.

Meanwhile, market participants were awaiting the outcome of the final stage of Greece's debt restructuring deal, ahead of a debt auction to determine the payout on Greek credit default swaps. The settlement was expected to go smoothly.

The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD shedding 0.22% to hit 1.3035.

Also Monday, the U.S. National Association of Home Builders said builder confidence in the market for newly built, single-family homes was unchanged in March, holding at its highest level since June 2007.

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