Investing.com - The U.S. dollar was little changed against the Canadian dollar in early trade on Tuesday, as tensions over the political and military crisis between Russian and Ukraine eased, supporting market sentiment.
USD/CAD hit session highs of 1.1102 and was last trading down 0.05% to 1.1070.
The pair was likely to find support at 1.1030 and resistance at 1.1109, Monday’s high.
Market sentiment was boosted after Russian President Vladimir Putin said a military deployment in Ukraine is not needed now, but added that the “possibility” still remains.
The remarks came after Russia’s defense minister ordered troops engaged in military exercises close to Ukraine’s borders to return to their bases.
Market sentiment remained fragile, with Russian forces still maintaining a military presence in Ukraine’s Crimea region. The U.S. was likely to impose economic sanctions on Russia later in the week, following its military incursion into Crimea.
The U.S. dollar continued to remain supported after upbeat U.S. data on manufacturing and consumer spending on Monday indicated that the economy is improving.
Investors were looking ahead to the Bank of Canada’s rate review on Wednesday.
At its last policy meeting in January the BoC left the door open to a rate cut, saying the path of the next rate move would depend on economic data. However, recent stronger-than-forecast inflation data has eased concerns over the outlook for growth.
Elsewhere, the loonie, as the Canadian dollar is also known, was slightly lower against the euro, with EUR/CAD edging up 0.09% to 1.5228.