Investing.com - The U.S. dollar edged higher against the Canadian dollar in holiday-thinned trade on Monday, as Friday’s weaker-than-forecast Canadian manufacturing sales data continued to cloud the outlook for the Canadian economy.
USD/CAD hit 1.0080 during early U.S. trading hours, the session high; the pair subsequently consolidated at 1.0072, inching up 0.06%.
The pair was likely to find support at 1.0056, the session low and resistance at 1.0099, the high of January 28 and a six-month high.
The Canadian dollar slumped against the greenback on Friday after official data showed that Canadian manufacturing sales dropped by 3.1% in December, far more than expectations for a 1% decline and erasing Novembers 1.9% gain.
The data came after Bank of Canada Governor Mark Carney reiterated that rate hikes are less urgent as a result of a more subdued inflation outlook.
Elsewhere, the loonie, as the Canadian dollar is also known, was fractionally lower against the euro, with EUR/CAD edging up 0.07% to 1.3459.
The single currency remained under pressure after data last week showing that the recession in the euro zone deepened in the fourth quarter fuelled speculation over a possible rate cut by the European Central Bank.
ECB President Mario Draghi was to speak in the European Union parliament later in the day.
Meanwhile, trade was expected to remain subdued on Monday, with U.S. markets closed for the President’s Day holiday.
USD/CAD hit 1.0080 during early U.S. trading hours, the session high; the pair subsequently consolidated at 1.0072, inching up 0.06%.
The pair was likely to find support at 1.0056, the session low and resistance at 1.0099, the high of January 28 and a six-month high.
The Canadian dollar slumped against the greenback on Friday after official data showed that Canadian manufacturing sales dropped by 3.1% in December, far more than expectations for a 1% decline and erasing Novembers 1.9% gain.
The data came after Bank of Canada Governor Mark Carney reiterated that rate hikes are less urgent as a result of a more subdued inflation outlook.
Elsewhere, the loonie, as the Canadian dollar is also known, was fractionally lower against the euro, with EUR/CAD edging up 0.07% to 1.3459.
The single currency remained under pressure after data last week showing that the recession in the euro zone deepened in the fourth quarter fuelled speculation over a possible rate cut by the European Central Bank.
ECB President Mario Draghi was to speak in the European Union parliament later in the day.
Meanwhile, trade was expected to remain subdued on Monday, with U.S. markets closed for the President’s Day holiday.