Forex – USD/CAD hits more than 1-week highs on dropping oil prices

Investing.com – The U.S. dollar climbed to a more than one-week highs against its Canadian counterpart on Monday, amid fresh expectations for an upcoming U.S. rate hike and as lower oil prices dampened demand for the commodity-related Canadian currency.

USD/CAD hit 1.3124 during early U.S. trade, the pair’s highest since September 1; the pair subsequently consolidated at 1.3108, climbing 0.46%.

The pair was likely to find support at 1.2977, the low of September 2 and resistance at 1.3149, the high of September 1.

The dollar found support late Friday after Boston Fed President Eric Rosengren said that low interest rates are increasing the chance of overheating the U.S. economy.

He added that gradually tightening monetary policy is appropriate to maintaining full employment.

Market participants were looking ahead to a speech from FOMC voting member Lael Brainard due later on Monday for further hints on a potential interest rate increase.

Meanwhile, the Canadian dollar was hit by tumbling oil prices on Monday due to an increase in oil drilling activity in the US.

The loonie was lower against the euro, with EUR/CAD gaining 0.36% to 1.4712.

The single currency remained mildly supported after the European Central Bank held back from adding additional stimulus measures last week and left interest rates on hold.