Investing.com - The U.S. dollar trimmed gains against its Canadian counterpart on Monday, as climbing oil prices lent support to the commodity-related Canadian currency, while the Federal Reserve’s inaction last week continued to weigh on the greenback.
USD/CAD pulled away from 1.3201, the pair’s highest since September 21, to hit 1.3165 during early U.S. trade, steady for the day.
The pair was likely to find support at 1.3095, the low of September 21 and resistance at 1.3238, the high of September 21.
The Canadian dollar was boosted as oil prices moved sharply higher on Monday, as the world's largest producers gathered in Algeria to discuss ways to support the market.
Meanwhile, markets were still recovering from the Fed’s decision to leave interest rates unchanged at the conclusion of its policy meeting on Wednesday, although it hinted that a hike could come in December if the job market continued to improve.
Market participants were also looking ahead to a report on U.S. new home sales due later in the day, as well as the highly-anticipated U.S. Presidential debate.
U.S. presidential nominees Hillary Clinton and Donald Trump were set to have their first debate at Hofstra University in New York state on Monday evening.
The loonie was lower against the euro, with EUR/CAD rising 0.28% to 1.4827.
The euro found some support after the German research institute Ifo earlier said its Business Climate Index rose to 109.5 this month, the highest level since July 2014, from a reading of 106.3 in August, above forecasts for 106.4.