WSJ: Canadian Dollar Up As U.S. Dollar Loses Momentum
By Don Curren
TORONTO--The Canadian dollar is modestly higher Monday as the greenback's rally against the Canadian currency appears to be losing momentum in the absence of any compelling new incentives to trade the currency.
The U.S. dollar is at C$1.1083 Monday, from C$1.1107 late Friday, according to data provider CQG.
A report from RBC Capital Markets said technical factors suggest the greenback's recent advance against the Canadian currency has begun to lose momentum.
The Canadian dollar began the Asian session on the defensive as concerns about the Chinese growth outlook continued to weigh on sentiment, it said. That caused the greenback to rally from C$1.1101 to a session high of C$1.1143, with bids from investment funds noted near the bottom end of the range, RBC said.
Cross trading of the Canadian dollar against major currencies other than the U.S. dollar subsequently put some pressure on the latter currency in London, it said. Some "light" investment fund selling of the British pound and the euro against the Canadian dollar weighed on the U.S. unit, RBC said.
It identifies C$1.1033 and C$1.0907 as support and C$1.1235 as resistance.
