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Forex - USD/CAD tumbles to 4-day low as oil rallies on Libya

Published 03/21/2011, 10:40 AM
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Investing.com – The U.S. dollar tumbled to a four-day low against its Canadian counterpart on Monday, as crude oil, Canada’s largest export rallied after coalition forces stepped up air strikes on Libya.

USD/CAD hit 0.9750 during European late afternoon trade, the pair’s lowest since March 15; the pair subsequently consolidated at 0.9770, tumbling 0.76%.

The pair was likely to find support at 0.9667, the low of March 9 and a multi-year low and resistance at 0.9865, Friday’s high.

Earlier in the day, coalition forces, including the U.S., France and others launched a second wave of air strikes on Libya in an attempt to remove loyalist support for leader Moammar Gadhafi and protect Libyan civilians from government forces.

Crude oil contracts for delivery in April were trading at USD103.08 on the New York Mercantile Exchange on Thursday, after peaking at 104.25 earlier.

Meanwhile, anti-government protests continued in Yemen, Bahrain and Syria over the weekend, adding to fears that unrest would continue to spread throughout the oil-rich Middle East and North Africa.

The loonie was also sharply higher against the yen, with CAD/JPY surging 1.45% to hit 83.06.

Also Monday, industry data showed that sales of previously owned homes in the U.S. declined in February, following three consecutive monthly gains.


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