Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Monday, but gains were expected to remain limited as a recent batch of disappointing U.S. data continued to weigh.
Trading volumes were expected to remain light on Monday with U.S. markets closed for the Presidents' Day Holiday.
USD/CAD hit 1.2469 during early U.S. trade, the session high; the pair subsequently consolidated at 1.2465, edging up 0.15%.
The pair was likely to find support at 1.2553, the low of February 2 and resistance at 1.2647, the high of February 12.
Sentiment on the dollar remained vulnerable after data on Friday showed that the preliminary reading of the University of Michigan’s consumer sentiment index fell to 93.6, down from January’s final reading of 98.1. Economists had forecast an unchanged figure.
The report came a day after data showing that U.S. retail sales unexpectedly fell 0.8% last month after dropping 0.9% in December, indicating that consumer spending remained sluggish at the start of the year.
The Canadian dollar had found some support on Friday after Statistics Canada reported that manufacturing sales rose 1.7% in December, beating expectations for a 0.9% fall. November's figure was revised to a 1.3% decline from a previously estimated 1.4% drop.
The loonie was lower against the euro, with EUR/CAD rising 0.28% to 1.4221
The euro strengthened mildly as Greece was due to resume negotiations with its euro zone partners later in the day after talks on a new debt deal last week ended without an agreement.
Greece’s current €240 billion bailout is due to expire on February 28 and the new Greek government does not want it extended, fuelling fears over a conflict with its creditors which could trigger the country’s exit from the euro zone.
On Sunday Athens said it was confident of reaching an agreement but reiterated it would not accept harsh austerity measures in any new deal.