Forex – USD/CAD Rises But Upside Seen Limited

© Reuters. Greenback regains some ground vs. loonie in early trade – The U.S. dollar rose against its Canadian counterpart on Monday, as the greenback found some relief following last week’s broad decline, although gains were expected to remain limited.

was up 0.25% at 1.2339 by 09:30 a.m. ET (13:30 GMT), still close to last Thursday’s four-month low of 1.2281.

The dollar found some support after Friday’s U.S. GDP data showed that domestic consumption and capital spending remained strong even though the headline figure was weaker than expected due to a rise in imports.

Data on Monday showed that U.S. personal income increased in December, beating expectations for a 0.3% rise, while personal spending rose only , compared to expectations for a 0.5% gain.

But sentiment on the greenback remained fragile after U.S. Treasury Secretary Steven Mnuchin said last week that e for American trade.

President Donald Trump contradicted Mnuchin’s position by defending the need for a strong currency, but traders fear the White House may use currency policy as a tool to get better trade deals with other countries.

Meanwhile, the commodity-related Canadian dollar was pressured lower by a decline in on Monday, although they remained within close distance of recent multi-year highs.

The loonie was higher against the euro, with shedding 0.32% to 1.5247.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.