Investing.com - The U.S. dollar was almost unchanged against its Canadian counterpart on Monday, as investors eyed the release of U.S. pending home sales data later in the day after a disappointing U.S. housing report on Friday fuelled uncertainty over the health of the market.
USD/CAD hit 1.1246 during early U.S. trade, the pair's highest since October 23; the pair subsequently consolidated at 1.1247, easing up 0.06%.
The pair was likely to find support at 1.1181, the low of October 22 and resistance at 1.1294, the high of October 22.
Investors were warry over the health of the U.S. housing market after a report on Friday showed that U.S. new home sales rose 0.2% lat month to 467,000 units, below expectations for an increase to 470,000 units.
August's figure was downwardly revised to a 15.3% climb to 466,000 units from a previously estimated 18.0% jump to 504,000 units.
Sentiment on the greenback also remained vulnerable as fears that a slowdown in global economic growth could act as a drag on the U.S. economic recovery have prompted investors to push back expectations for an increase in interest rates by the Federal Reserve to the second half of 2015.
Meanwhile, market sentiment mildly recovered as the European Central Bank announced the results of yearlong tests to assess the finances on 150 banks on Sunday. Overall, 25 banks were found to have a capital shortfall, but most have already taken steps to resolve this, the ECB said.
In total, 13 banks still need to come up with a total of €9.5 billion in extra capital, which was at the lower end of market expectations.
The loonie was lower against the euro, with EUR/CAD rising 0.23% to 1.4264.
The euro weakened earlier, after German research institute Ifo said its index of business climate slid to 103.2 this month from 104.7 in September. It was the lowest level in almost two years and was below forecasts of 104.3.
German firms reported that they are more gloomy about current conditions and future prospects than last month, fuelling fears over the outlook for fourth quarter growth.