Investing.com - The U.S. dollar trimmed gains against its Canadian counterpart on Wednesday, after hitting a fresh seven-month peak as markets were digesting Donald Trump’s electoral victory and oil prices eased off more than one-month lows, lending some support to the Canadian currency.
USD/CAD pulled away from 1.3525, the pair’s highest since March, to hit 1.3449 during early U.S. trade, still up 1.24%.
The pair was likely to find support at 1.3266, the session low and resistance at 1.3553.
Oil prices initially plunged to more than one-month lows after Trump was declared the 45th U.S. President, confounding expectations for a Democratic victory.
Trump received a call from his opponent Hillary Clinton to concede the presidency, after he clinched victories in the key battleground states of Florida, North Carolina and Ohio.
A Trump victory is viewed as negative for financial markets as his policies are source of uncertainty for the U.S. economy.
But crude pared some of those losses as investors began to digest the outcome of the presidential election, lending support to the commodity-related Canadian dollar in return.
The loonie was sharply lower against the euro, with EUR/CAD advancing 0.82% to 1.4771.