Investing.com - The U.S. dollar edged higher against the Canadian dollar on Tuesday, as investors looked ahead to a U.S. report on consumer confidence later in the session, amid concerns that the economic recovery is losing momentum.
USD/CAD hit session highs of 1.1084 and was last up 0.12% to 1.1073.
The pair is likely to find support at 1.1053, Monday’s low and resistance at 1.1141, Monday’s high.
Earlier Tuesday, Standard & Poor’s with Case-Shiller reported that its house price index rose 13.4% in December from a year earlier, compared to forecasts for a 13.3% gain, following a rise of 13.7% in November.
Market participants were looking ahead to a U.S. report on consumer confidence due out later in the session, amid concerns over the outlook for the economic recovery.
Investors remained cautious after a recent series of disappointing U.S. economic indicators, including reports on jobs growth, retail sales and housing sparked concerns that the economic recovery has lost momentum since the end of last year.
The loonie, as the Canadian dollar is also known, remained firmer after falling sharply against the greenback last week. The Canadian dollar had been trending higher this month after falling to four-and-a-half year lows against the greenback in late January.
Investors were looking ahead to Canadian data on economic growth and trade later in the week after slightly stronger than forecast domestic inflation data last week prompted investors to trim back expectations for a rate cut by the Bank of Canada.
Elsewhere, the loonie was lower against the euro, with EUR/CAD rising 0.29% to 1.5235.
The euro found support after the European Commission revised up its growth forecast for the euro zone to 1.2% this year, up from 1.1% in November.
However, the EC also cut its inflation forecast for 2014 to 1% from 1.5% in November and warned that debt levels in several countries will continue to climb.
Earlier Tuesday, official data confirmed that Germany’s economy grew 0.4% in the fourth quarter and expanded 1.3% on a year-over-year basis as strong overseas demand bolstered exports.