USD/CAD Rises But Upside Seen Limited
Investing.com - The U.S. dollar rose against its Canadian counterpart on Monday, as the greenback found some relief following last week's broad decline, although gains were expected to remain limited.
USD/CAD was up 0.25% at 1.2339 by 09:30 a.m. ET (13:30 GMT), still close to last Thursday's four-month low of 1.2281.
The dollar found some support after Friday’s U.S. GDP data showed that domestic consumption and capital spending remained strong even though the headline figure was weaker than expected due to a rise in imports.
Data on Monday showed that U.S. personal income increased 0.4% in December, beating expectations for a 0.3% rise, while personal spending rose only 0.4%, compared to expectations for a 0.5% gain.
But sentiment on the greenback remained fragile after U.S. Treasury Secretary Steven Mnuchin said last week that a weaker dollar was positive for American trade.
President Donald Trump contradicted Mnuchin's position by defending the need for a strong currency, but traders fear the White House may use currency policy as a tool to get better trade deals with other countries.
Meanwhile, the commodity-related Canadian dollar was pressured lower by a decline in oil prices on Monday, although they remained within close distance of recent multi-year highs.
The loonie was higher against the euro, with EUR/CAD shedding 0.32% to 1.5247.
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