Investing.com - The U.S. dollar was almost unchanged against the Canadian dollar in quiet trade on Tuesday as investors looked ahead to U.S. reports on retail sales and consumer sentiment later in the week to gauge the economic outlook.
USD/CAD edged up 0.03% to 1.1108 and was trading in a range of 1.1131 and 1.1100.
The pair was likely to find support at 1.1085, Monday’s low and resistance at 1.1160.
Overall market sentiment recovered somewhat, following a selloff in risk assets in the previous session after unexpectedly weak trade data out of China sparked fresh concerns over the strength of the world’s second-largest economy.
Markets were also warily eyeing the ongoing standoff between Russia and the West over Ukraine.
The pair looked likely to continue trading in a narrow range ahead of Thursday’s report on U.S. retail sales and Friday’s U.S. data on consumer sentiment.
Elsewhere, the euro eased back from more than four-year highs against the Canadian dollar, with EUR/CAD slipping 0.17% to 1.5385, backing off the previous session’s highs of 1.5463.
The euro weakened after European Central Bank Vice President Vitor Constancio said on Tuesday that markets had missed some parts of its message on forward guidance last week.
The bank made its forward guidance on the existence of slack in the euro zone economy more precise at last week’s meeting, he said, but this was not picked up by markets.
He also said the central bank still had policy options available, including lower interest rates or quantitative easing, if necessary.
The euro has strengthened broadly since the ECB refrained from implementing any new measures to shore up growth last week, despite forecasting below target inflation for the next few years.