Shutterstock photo
Markets

Forex - USD/CAD edges higher as oil prices retreat after rally

Shutterstock photo

Shutterstock photo

Forex Pros - The U.S. dollar edged higher against its Canadian counterpart on Tuesday, easing up to a three-day high, as the price of crude oil, Canada's largest export, retreated.

USD/CAD hit 0.9748 during European late afternoon trade, the pair's highest since Thursday; the pair subsequently consolidated at 0.9739, easing up 0.07%.

The pair was likely to find support at 0.9697, Monday's low and resistance at 0.9775, last Thursday's high.

The dollar's gains came amid reports that more countries may step in to boost oil production and that Libyan leader Moammar Gadhafi may be looking for a way to step down. However, fierce fighting continued in Libya, with fresh reports of bombs falling on the key oil town of Ras Lanuf.

The dollar had been pressured lower in recent days amid threats that surging oil prices could dampen the U.S. recovery, and further weighed by the likelihood for a sustained period of low interest rates.

Also Tuesday, industry data showed that Canadian housing starts rose more-than-expected in February. Canadian housing starts gained 6.6% last month, rising to an annualized 181,900. The market was expecting only about 173,500.

Meanwhile, the loonie was higher against the euro, with EUR/CAD shedding 0.64% to hit 1.3506.

Later in the day, the U.S. was to publish a report on economic optimism.

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