Forexpros – The U.S. dollar was higher against its Canadian counterpart in subdued trade on Monday, as a combination of concerns over the outlook for global growth and a Greek debt restructuring deal supported safe haven demand.
USD/CAD hit 0.9960 during early U.S. trade, the pair’s highest since February 28; the pair subsequently consolidated at 0.9938, gaining 0.48%.
The pair was likely to find support at 0.9884, the session low and resistance at 0.9990, the high of February 28.
Demand for growth linked currencies was hit earlier after Chinese Premier Wen Jiabao cut the nation’s economic growth target to 7.5% for 2012 from a previous target of 8%, in order to allow the pace of economic expansion room to moderate if necessary.
Meanwhile, investors remained jittery amid uncertainty over whether Greece will finalize a debt swap deal with private creditors ahead of Thursday’s deadline. A failure to agree on the debt restructuring deal would put the country back on the brink of a messy sovereign debt default.
The loonie, as the Canadian dollar is also known, was down against the euro, with EUR/CAD climbing 0.61% to hit 1.3137.
Later in the day, the U.S. was to produce government data on factory orders, while the Institute of Supply Management was to release its closely watched report on U.S. service sector growth.
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