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Forex - USD/CAD retreats from multi-year low as crude oil eases

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Forex Pros - The Canadian dollar trimmed gains against its U.S. counterpart on Wednesday, retreating from multi-year highs as the price of crude oil, the nation's largest export, eased.

USD/CAD retreated from 0.9668 the pair's lowest since mid-November 2007, to hit 0.9692 during European afternoon trade, shedding 0.21%.

The pair was likely to find short-tern support at 0.9668, the day's low and resistance at 0.9747, Tuesday's high.

Earlier in the day, crude futures for delivery in April were trading at USD105.28 a barrel on the New York Mercantile Exchange, after peaking at USD105.89.

The greenback has been pressured lower 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.

The loonie shrugged off data showing that Canadian new house prices rose less-than-expected in January. Statistics Canada said its new housing price index rose by 0.2% in January, after rising by 0.1% the previous month, trailing expectations for a 0.4% increase.

The loonie was also higher against the euro, with EUR/CAD shedding 0.21% to hit 1.3478.

On Thursday, Canada was to publish official data on January's trade balance and a key employment report on Friday.

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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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