Forex Pros – The U.S. dollar tumbled to hit a 3-week low against its Canadian counterpart on Tuesday, as crude oil prices advanced past USD 76 a barrel on speculation of rising demand. USD/CAD hit 1.0293 during European afternoon trade, the pair's lowest since June 23; the pair subsequently consolidated at 1.0305, shedding 0.65%. The pair was likely to find support at 1.0271, the low of June 23, and resistance at 1.0454, the high of July 9. Earlier Tuesday, the International Energy Agency said in its first forecast for next year that global oil demand will increase 1.6% in 2011 on the back of economic growth in emerging markets. The Paris-based adviser to oil-consuming nations also said demand will grow faster than refiners can add new plants in the two years to 2011, reducing the current surplus in processing capacity. The Canadian closely tracks crude oil prices, as the country is a major exporter of oil to the U.S. The Canadian dollar was also up against the euro, with EUR/CAD shedding 0.4% to hit 1.3012. Also Tuesday, Statistics Canada said Canada's trade balance posted a seasonally adjusted deficit of CAD 503 billion in May, after posting a deficit of CAD 330 billion in April, whose figure was revised up from CAD 200 billion. Economists had expected the trade balance to be even in May.

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