Shutterstock photo
Markets

Forex - USD/CAD declines to 2-day low as higher oil prices weigh

Shutterstock photo

Shutterstock photo

Forex Pros - The Canadian dollar rose to a two-day high against its U.S. counterpart on Thursday, as crude oil, Canada's largest export, remained well supported by ongoing unrest in the Middle East and Libya.

USD/CAD hit 0.9758 during early U.S. trade, the pair's lowest since Tuesday; the pair subsequently consolidated at 0.9764, shedding 0.52%.

The pair was likely to find support at 0.9733, the low of March 15 and resistance at 0.9843, Wednesday's high.

Crude oil contracts for delivery in May were trading at USD 105.69 a barrel on the New York Mercantile Exchange, after peaking at USD106.65 earlier in the day.

The Canadian dollar shrugged off the prospect of a looming election, after opposition party leaders said that they would not support Prime Minister Stephen Harper's 2011-2012 budget, but would force a non-confidence vote against the government this week.

The loonie was also up against the euro, with EUR/CAD slipping 0.15% to hit 1.3803.

Meanwhile, the U.S. Commerce Department said earlier that durable goods orders fell 0.9% in February, confounding expectations for a 1.8% gain.

In a separate report, the U.S. Department of Labor said initial jobless claims fell slightly more-than-expected last week.

Forex News

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.

Other Topics

ForEx

Latest Markets Videos