USD/CAD Falls to Three-Month Lows, but Risks Ahead Will Limit Further Losses By Investing.com

  


© Reuters.

By Yasin Ebrahim

Investing.com – The dollar fell to a three-month low against the Canadian dollar Monday, adding to its losses over the past three weeks, but analysts warn of easing risk sentiment in the near term that will keep a lid on further downside.

fell 0.40% to C$1.3371, hitting its lowest since Mar. 4, shrugging of a fall in oil prices amid data showing Canadian housing starts bounced back last month.

Canadian bounced back to 193,500 in May after falling to 166,500 in April.

The surprising resilience in housing added to a string of recent near-term data flow that has “clearly been less discouraging than was expected even a few weeks ago,” RBC said in a note.

Still, the loonie’s current three-week winning streak against the greenback is likely to come under pressure over the near-term.

Easing risk-on market sentiment amid ongoing U.S.-China tensions and the threat of a second wave of infections will likely keep the loonie’s advance in check, Commerzbank (DE:) said in a note.

USD/CAD is expected to stabilize at current levels “for the time being,” the bank added.

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.



Read More…