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Forex - USD/CAD moves lower but remains supported

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Investing.com -

Investing.com - The U.S. dollar held steady at a fresh 11-1/2 year high against its Canadian counterpart on Monday, as demand for the greenback remained supported ahead of this week's Federal Reserve's meeting and an ongoing oil rout weighed on the Canadian currency.

USD/CAD hit 1.3678 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3712, declining 0.32%.

The pair was likely to find support at 1.3618, Friday's low and resistance at 1.3812.

The dollar still remained close to an 11-1/2 year high as most investors expect the Fed to raise interest rates for the first time since June 2006 at its upcoming meeting on December 15-16.

Higher interest rates would make the U.S. dollar more attractive to yield-seeking investors.

Meanwhile, the commodity-related Canadian dollar remained under pressure after oil prices fell to the lowest levels since February 2009 on Monday, as ongoing worries over a global supply glut continued to weigh.

Crude oil futures for December delivery were down 0.95% at $35.28 in early U.S. trading.

The loonie was higher against the euro, with EUR/CAD sliding 0.37% to 1.5070.

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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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