Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Forex - USD/CAD slides lower in risk-on trade

Published 06/29/2016, 09:26 AM
Updated 06/29/2016, 09:26 AM
Greenback falls against loonie in early trade

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.