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Forex - U.S. dollar lower against Canadian dollar

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Investing.com -

Investing.com - The U.S. dollar was weaker against the Canadian dollar on Monday, as record low borrowing costs in the peripheral euro zone and signs that the U.S. economy is gradually improving bolstered risk appetite.

USD/CAD was down 0.18% to lows of 1.0912 from 1.0946 on Friday.

The pair is likely to find support at 1.0890 and resistance at 1.0960, Thursday's high and a one-month high.

Borrowing costs in the euro zone fell to fresh record lows on Monday, as market sentiment was boosted by the European Central Bank's decision last week to launch a package of measures to avert the threat of persistently low inflation in the euro area.

Trading conditions remained light due to the Whit Monday holiday in some parts of Europe.

Market sentiment was also boosted after Friday's nonfarm payrolls report showed that the U.S. economy added jobs for the fourth successive month in May, with employment returning to its pre-recession peak.

The U.S. economy added 217,000 jobs last month, just under expectations for jobs growth of 218,000, while the unemployment rate remained unchanged at a five-and-a-half year low of 6.3%.

In Canada, official data on Friday showed that the economy added 25,800 jobs in May, above expectations for 25,000, but gains were due to the creation of part-time positions. The Canadian unemployment rate ticked up to 7.0% from 6.9% in April.

The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.48% to 1.4841.

Also Monday, a report by the by the Canada Mortgage and Housing Corporation showed that housing starts in Canada were virtually unchanged for the third consecutive month in May, indicating that the new home construction market is headed for a soft landing this year.

CMHC said housing starts were trending at 184,438 units in May compared to 183,872 in April.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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