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Forex - USD/CAD moves higher as crude oil prices slump

Published 01/24/2011, 09:37 AM
USD/CAD
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EUR/CAD
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Investing.com – The U.S. dollar was up against its Canadian counterpart on Monday, as crude oil prices weakened in quiet trade with no major U.S. or Canadian economic releases scheduled to take place.

USD/CAD hit 0.9982 during European afternoon trade, the daily high; the pair subsequently consolidated at 0.9964, gaining 0.33%.

The pair was likely to find support at 0.9908, Friday’s low and resistance at 0.9986, Friday’s high.

Earlier in the day, crude oil prices slumped, tumbling 1.56% to hit USD 87.67 a barrel, a two-week low.

Crude prices were weighed by a stronger U.S. dollar and after official data showing an increase in U.S. crude oil stockpiles. The Canadian dollar closely tracks changes in crude oil prices as Canada is a major supplier of crude oil to the U.S.

The loonie was also lower against the euro, with EUR/CAD easing up 0.13% to hit 1.3544.

Earlier in the day, preliminary data showed that the euro zone purchasing manager services index rose more-than-expected in January while the manufacturing PMI unexpectedly fell to a two month low.

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