Investing.com - The U.S. dollar was almost unchanged against its Canadian counterpart on Tuesday, as sentiment remained under pressure after the downgrade of six European countries and disappointing U.S. data while higher crude oil prices supported the loonie.
USD/CAD hit 1.0027 during early U.S. trade, the pair’s highest since February 10; the pair subsequently consolidated at 0.9992, edging down 0.05%.
The pair was likely to find support at 0.9963, the low of February 1 and resistance at 1.0038, the high of February 10.
Investor confidence weakened after ratings agency Moody's downgraded the credit ratings on six European countries earlier, including Spain and Italy late Monday. France and Austria kept their top ratings but had their outlooks dropped to "negative" from "stable."
Sentiment was also hit after the U.S. Census Bureau said retail sales rose less-than-expected by 0.4% in January, falling short of expectations for a 0.8% increase.
December’s figure was revised down to a flat reading from a previously reported 0.1% increase.
The report also showed that core retail sales, which exclude automobile sales, rose by 0.7% last month, above expectations for a 0.6% gain.
Meanwhile, the loonie remained supported as crude oil for delivery in March climbed 0.62% to trade at USD101.92 a barrel on the New York Mercantile Exchange.
Raw materials, including oil account for about half of Canada’s export revenue.
Elsewhere, the loonie was higher against the euro with EUR/CAD slipping 0.15%, to hit 1.3162.
Also Tuesday, a report showed that German economic sentiment rose significantly more-than-expected in February, turning positive for the first time since May 2011, while economic sentiment in the euro zone rose to minus 8.1 from minus 32.5 in January.
USD/CAD hit 1.0027 during early U.S. trade, the pair’s highest since February 10; the pair subsequently consolidated at 0.9992, edging down 0.05%.
The pair was likely to find support at 0.9963, the low of February 1 and resistance at 1.0038, the high of February 10.
Investor confidence weakened after ratings agency Moody's downgraded the credit ratings on six European countries earlier, including Spain and Italy late Monday. France and Austria kept their top ratings but had their outlooks dropped to "negative" from "stable."
Sentiment was also hit after the U.S. Census Bureau said retail sales rose less-than-expected by 0.4% in January, falling short of expectations for a 0.8% increase.
December’s figure was revised down to a flat reading from a previously reported 0.1% increase.
The report also showed that core retail sales, which exclude automobile sales, rose by 0.7% last month, above expectations for a 0.6% gain.
Meanwhile, the loonie remained supported as crude oil for delivery in March climbed 0.62% to trade at USD101.92 a barrel on the New York Mercantile Exchange.
Raw materials, including oil account for about half of Canada’s export revenue.
Elsewhere, the loonie was higher against the euro with EUR/CAD slipping 0.15%, to hit 1.3162.
Also Tuesday, a report showed that German economic sentiment rose significantly more-than-expected in February, turning positive for the first time since May 2011, while economic sentiment in the euro zone rose to minus 8.1 from minus 32.5 in January.