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Forex - USD/CAD erases losses on BoC rate view

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Forex Pros - The U.S. dollar erased losses against its Canadian counterpart on Tuesday, as markets trimmed expectations for an interest rate hike by the Bank of Canada next week.

USD/CAD clawed back up from 0.9755, the daily low, to hit 0.9781 during early U.S. trade, easing up 0.04%.

The pair was likely to find support at 0.9730, Monday's low and short-term resistance at 0.9809, Monday's high and a two-month high.

The Canadian dollar trailed its commodity linked peers after last Friday's softer-than-expected inflation and retail sales data dampened expectations for an interest rate increase by the country's central bank next week.

Meanwhile, crude oil rebounded after its biggest loss in more than a week, with crude oil for delivery in July jumping 1.90% on the New York Mercantile Exchange, to trade at USD99.38 a barrel after peaking at USD99.81 earlier in the day.

Raw materials, including oil account for about half of Canada's export revenue.

The loonie was also lower against the euro, with EUR/CAD rising 0.40% to hit 1.3792.

Later in the day, the U.S. was to publish government data on new home sales.

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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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