© Reuters. Greenback slips against broadly stronger loonie
Investing.com — The US dollar edged lower against its Canadian counterpart on Monday, as oil prices climb lent support to the commodity-linked Canadian dollar, although fresh hopes for a US interest rate increase this year, the greenback is limited its losses.
USD/CAD: 0.13% has been pressed at 1.2322 from 09:30 a.m. ET (13:30 GMT).
The Canadian dollar was supported by the sharp rise in oil prices on Monday, as optimism that the market added on his way in the direction of rebalancing bullish momentum.
But, the US dollar losses limited to said goods according to the New York Federal Reserve President William Dudley that the Fed is on course, gradually the interest rates given factors depressing inflation «fading» and the US economy, the fundamentals are solid.
“I expect that inflation will rise and in order to stabilize the (Fed’s) 2% target in the medium term,» he said before adding that to remove «in response, the Federal Reserve is likely to continue monetary policy accommodation gradually.»
The loonie is also stronger against the euro, with EUR/CAD declining 0.75% to 1.4633.
The common currency showed little reaction to a speech by the President of the European Central Bank Mario Draghi on Monday in which he said the ECB will later this year on his policy.
The market participants have the weekend to digest the results of the election in Germany, which showed the growing support for extreme right-wing party.
German Chancellor Angela Merkel won a fourth term on Sunday, but will have to build, to form a coalition government, as the Conservative support in the face of a rise in anti-immigration Alternative for Germany (AfD) is lost.