Forexpros – The U.S. dollar pulled back from three-month lows against the Canadian dollar on Monday, but the Canadian dollar remained well supported above parity, in thin trading conditions.
USD/CAD pulled away from 0.9904, the pair’s lowest since May 4, to hit 0.9930 during early U.S. trade, easing up 0.21%.
The pair was likely to find support at 0.9860, the low of May 4 and resistance at 0.9969, Friday’s high.
The Canadian dollar remained supported despite data on Friday showing that the nation’s unemployment rate unexpectedly ticked higher in July, as comments by Bank of Canada Governor Mark Carney fuelled expectations for a rate increase.
Statistics Canada said Friday that the economy lost 30,400 jobs in July, against expectations for a 9,000 increase, bringing the unemployment rate up to 7.3%, from 7.2% the previous month.
But the Canadian dollar remained firmly above parity against the greenback after BoC Governor Mark Carney said last week that the country’s economy was in a “very different place” than many of its global counterparts and indicated that the central bank may yet raise interest rates.
The loonie, as the Canadian dollar is also known, was weaker against the euro, with EUR/CAD up 0.69% to 1.2259.
Trade looked likely to remain subdued on Monday, with no significant economic data releases on the calendar, while volumes were light with many market participants on summer holidays.