Forex - USD/CAD up as BoC holds rates steady, oil prices dip
Investing.com
Published Apr 12, 2011 09:33AM ET
USD/CAD hit 0.9640 during early U.S. trade, the pair’s highest since April 6; the pair subsequently consolidated at 0.9608, gaining 0.41%.
The pair was likely to find support at 0.9525, Friday’s low and a multi-year low and resistance at 0.9692, the high of April 5.
Earlier in the day, the BoC kept its benchmark interest rate unchanged at 1% and said the economy will reach full output six months faster than previously forecast.
The bank also said that “the persistent strength of the Canadian dollar could create even greater headwinds for the Canadian economy” by acting as a drag on exports and holding down inflation.
Meanwhile, crude futures for delivery in May were trading at USD108.22 a barrel on the New York Mercantile Exchange, after peaking at USD110.22, earlier in the day.
The loonie was also down against the euro, with EUR/CAD surging 0.86% to hit 1.3927.
Also Tuesday, official data showed that Canadian new house prices rose broadly in line with expectations in February.
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Written By: Investing.com
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