The U.S. dollar rose to three-and-a-half month highs against its Canadian counterpart today, as investors awaited the Federal Reserve’s upcoming policy statement this week and as declining oil prices dampened demand for the commodity-related Canadian currency.
The pair was likely to find support at 1.3051, Friday’s low and resistance at 1.3191, the high of May 24.
Upbeat U.S. data released that week continued to support expectations for a rate hike by the U.S. central bank in the near future.
While most investors expect the Fed to leave its monetary policy unchanged this week, it could give hints on the timing of future rate hikes.
Meanwhile, the Canadian dollar weakened as oil prices moved lower today, amid ongoing global supply glut concerns.
The loonie was lower against the euro.
Earlier today, data showed that the German Ifo business climate index ticked down to 108.3 in July from 108.7 in June, compared to expectations for a drop to 107.5.