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Forex - USD/CAD little changed in quiet trade

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Investing.com - The U.S. dollar was almost unchanged against the Canadian dollar on Monday, amid caution over the outlook for U.S. budget negotiations and speculation that the Federal Reserve may end its quantitative easing program before the end of the year.

USD/CAD hit 0.9860 during early U.S. trade, the session low; the pair subsequently consolidated at 0.9868, dipping 0.05%.

The pair was likely to find support at 0.9835, the low of January 2 and near-term resistance at 0.9883, the session high.

Demand for the greenback continued to be underpinned after Thursday's minutes from the Fed's December meeting showed that some policymakers considered an earlier-than-expected end to the bank's quantitative easing program.

However official data on Friday showed the U.S. economy added 155,000 jobs in December, easing from an upwardly revised increase of 161,000 in November, fanning concerns that the pace of the recovery in the U.S. labor market is moderating.

In contrast, the Canadian economy added 39,000 jobs in December, well above expectations for a 5,000 rise, while the unemployment rate dropped to 7.1% from 7.2%.

The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD slipping 0.13% to 1.2886.

Trade was expected to remain subdued on Monday, with no U.S. economic data releases scheduled. Canada was to release a report on the Ivey purchasing managers' index.

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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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