The U.S. dollar edged higher against its Canadian counterpart on Monday, as declining oil prices weighed on demand for the Canadian currency, although disappointing U.S. data released on Friday limited the greenback’s gains.
USD/CAD hit 1.3116 during European afternoon trade, the session high; the pair subsequently consolidated at 1.3103, adding 0.18%.
The pair was likely to find support at 1.2964, the low of October 21 and resistance at 1.3193, Friday high.
The commodity-linked Canadian dollar remained under pressure as crude oil futures for December delivery tumbled 1.76% to $45.75 at the open of U.S. trading.
But the greenback’s gains were limited after the University of Michigan said on Friday that its consumer sentiment index fell to 90.0 this month from 92.1 in September, compared to expectations for a rise to 92.5.
In addition, the U.S. Bureau of Economic Analysis said that personal spending rose 0.1% last month, disappointing expectations for a 0.2% rise and after a 0.4% increase in August.
The data added to concerns over the strength of the economy after the Commerce Department said last Thursday that U.S. gross domestic product grew at an annual rate of 1.5% in the three months to September, missing expectations for growth of 1.6%.
The loonie was lower against the euro, with EUR/CAD gaining 0.41% to 1.4455.
Data on Monday showed that growth in the euro zone’s manufacturing sector ticked higher in October. The final reading of the eurozone manufacturing purchasing managers’ index rose to 52.3 from 52.0 in September.
The French factory sector posted modest growth with the manufacturing PMI coming in at 50.6 but growth in Germany’s factory sector slid to a three-month low, with the factory PMI dipping to 52.1 from 52.3 in September.