Forex - USD/CAD slides lower in risk-on trade
Investing.com
Published Jun 29, 2016 09:26AM ET
Greenback falls against loonie in early trade
Investing.com - The U.S. dollar fell against its U.S. counterpart on Wednesday, despite positive U.S. data, as a rebound in risk sentiment and consequently in oil prices lent support to the commodity-related Canadian currency.
USD/CAD hit 1.2978 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3014, easing 0.09%.
The pair was likely to find support at 1.2891, the low of June 16 and resistance at 1.3120, the high of June 27.
The U.S. Commerce Department said that personal spending increased by 0.4% last month, matching expectations, while April’s number was revised up to a gain of 1.1% from a previously reported rise of 1.0% that had already been its largest increase in seven years.
Personal income, meanwhile, rose 0.2%, below forecasts for a 0.3% gain and after rising 0.5% a month earlier. April’s data was revised from an initial advance of 0.4%.
Meanwhile, risk sentiment continued to strengthen as concerns over the global effects of Britain’s shock decision to leave the European Union eased.
Markets were rattled late last week and on Monday by fears that a Brexit could hit investment in the U.K. economy, threaten London's role as a global financial capital and usher in a period of slower global economic growth.
EU leaders were to continue to discuss the implications of Brexit at a summit in Brussels on Wednesday.
The Canadian dollar was also supported by higher oil prices, thanks to the overall improvement in market sentiment and speculation weekly supply data due later in the session will show U.S. crude inventories fell at a faster pace than expected last week.
The loonie was lower against the euro, with EUR/CAD adding 0.21% to 1.4445.
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Written By: Investing.com
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