Investing.com - The Canadian dollar moved higher against its broadly weaker U.S. counterpart on Monday but gains were held in check by lower prices for oil, a major Canadian export.
USD/CAD was down 0.29% at 1.3464 by 09.29 ET after going as low as 1.3411 earlier.
The U.S. dollar weakened across the board as the euro rallied after the results of the first round of voting in French presidential elections eased concerns about the future of the euro zone.
Centrist former economy minister Emmanuel Macron edged out Marine Le Pen, leader of the far-right National Front party, in Sundays first round vote, delivering a result that most investors were hoping for.
Polls, which were largely accurate in predicting the first round outcome, have indicated that Macron will comfortably beat Le Pen in the runoff vote on May 7, easing fears over the risk of a French exit from the currency union and the potential breakup of the euro zone.
The stronger euro weighed on the dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, sending it down 0.71% to 98.95.
But the loonie’s gains were held in check as oil prices slipped as concerns over a global supply glut continued to dog markets.
Also Monday, data showed that Canadian wholesale sales fell less than expected in February, snapping four consecutive months of increases.
Wholesale sales fell by 0.2%, less than the 1.0% forecast by economists, Statistics Canada said.
January’s figure was revised down to show a gain of 3.0% from the previously reported 3.3%.