Investing.com - The U.S. dollar rose against its Canadian counterpart on Monday, as concerns following the British vote to leave the European Union dampened demand for risk-related assets.
USD/CAD hit 1.3087 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3018, easing up 0.09%.
The pair was likely to find support at 1.2714, Friday’s low and resistance at 1.3107, the high of June 3.
Market sentiment was hit after the U.K. voted by nearly 52% to 48% on Thursday to break away from the world's biggest trading bloc.
U.K. Chancellor George Osborne said on Monday the vote was likely to lead to further volatility in financial markets but that the economy is as strong as it could be to face the challenges ahead.
Investors fear that the decision could hit investment in the U.K. economy, threaten London's role as a global financial capital and trigger months of political uncertainty after British Prime Minster David Cameron resigned on Friday.
The Brexit vote also weighed on oil prices, which in return dampened demand for the commodity-related Canadian dollar.
The loonie was sharply higher against the euro, with EUR/CAD declining 0.86% to 1.4335, still close to Friday’s two-month low of 1.4240.