Investing.com - The U.S. dollar pulled back from a three-week high against its Canadian counterpart on Monday, as markets mulled the implications of weekend election results in the euro zone and Friday’s disappointing U.S. jobs data.
USD/CAD retreated from 0.9987, the pair’s highest since April 17, to hit 0.9943 during early U.S. trade, slipping 0.13%.
The pair was likely to find support at 0.9904, the low of April 23 and resistance at 1.0010, the high of April 17.
Market sentiment firmed up following a steep decline earlier in the session after weekend election results in Greece threw the future of the country’s international bailout agreement into doubt and fuelled fears over a possible Greek exit from the euro zone.
Neither of the country’s two pro-bailout parties secured enough votes to form a government, as voters favored smaller parties who campaigned against harsh austerity measures.
In France, President Nicolas Sarkozy was defeated by socialist candidate François Hollande, who has been critical of the country's austerity program.
Meanwhile, fears that the U.S. economic recovery is losing momentum continued to linger after Friday’s disappointing jobs data.
Official data showed that the U.S. economy added 115,000 jobs in last month, far short of expectations for a 170,000 increase, after adding an upwardly revised 154,000 jobs in March.
The Canadian dollar was little changed after domestic data showed that the number of new building permits issued rose unexpectedly in March, building on the previous month’s strong increase.
Statistic Canada said building permits rose by a seasonally adjusted 4.7% in March, defying expectations for a 1.5% decline, while February’s figure was revised up to a 7.7% gain.
The Canadian dollar was higher against the euro, with EUR/CAD shedding 0.44% to hit 1.2971.
Trading volumes were expected to remain light on Monday as markets in the U.K. were closed for a bank holiday.
USD/CAD retreated from 0.9987, the pair’s highest since April 17, to hit 0.9943 during early U.S. trade, slipping 0.13%.
The pair was likely to find support at 0.9904, the low of April 23 and resistance at 1.0010, the high of April 17.
Market sentiment firmed up following a steep decline earlier in the session after weekend election results in Greece threw the future of the country’s international bailout agreement into doubt and fuelled fears over a possible Greek exit from the euro zone.
Neither of the country’s two pro-bailout parties secured enough votes to form a government, as voters favored smaller parties who campaigned against harsh austerity measures.
In France, President Nicolas Sarkozy was defeated by socialist candidate François Hollande, who has been critical of the country's austerity program.
Meanwhile, fears that the U.S. economic recovery is losing momentum continued to linger after Friday’s disappointing jobs data.
Official data showed that the U.S. economy added 115,000 jobs in last month, far short of expectations for a 170,000 increase, after adding an upwardly revised 154,000 jobs in March.
The Canadian dollar was little changed after domestic data showed that the number of new building permits issued rose unexpectedly in March, building on the previous month’s strong increase.
Statistic Canada said building permits rose by a seasonally adjusted 4.7% in March, defying expectations for a 1.5% decline, while February’s figure was revised up to a 7.7% gain.
The Canadian dollar was higher against the euro, with EUR/CAD shedding 0.44% to hit 1.2971.
Trading volumes were expected to remain light on Monday as markets in the U.K. were closed for a bank holiday.