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Forex - USD/CAD slumps to 2-day low as U.S. growth outlook weighs

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Forex Pros - The U.S. dollar slumped to a two-day low against its Canadian counterpart on Tuesday, as recent weaker-than-expected U.S. economic data underlined the view that the Federal Reserve is unlikely to raise interest rates this year.

USD/CAD hit 0.9747 during European morning trade, the pair's lowest since Friday; the pair subsequently consolidated at 0.9756, shedding 0.53%.

The pair was likely to find support at 0.9666, the low of June 1 and short-term resistance at 0.9816, Monday's high.

Data on Friday showed that U.S. employment growth slowed sharply in May, reinforcing expectations that the Fed will not tighten monetary policy for some time to come.

The Canadian dollar also found support as crude oil prices steadied, ahead of a possible increase in production by the Organization of Petroleum Exporting Countries.

Crude oil for delivery in July edged higher, up 0.27% on the New York Mercantile Exchange, to trade at USD99.15 a barrel, after pulling away from a two-day low of USD98.32.

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

Meanwhile, the loonie was lower against the euro, with EUR/CAD easing up 0.09% to hit 1.4312.

Later in the day, Fed Chairman Ben Bernanke was to speak. His comments would be closely watched for his views on the U.S. economic recovery.

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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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