Investing.com - The U.S. dollar was trading close to the session high against its Canadian counterpart on Tuesday, following the release of U.S. data on consumer confidence, after weakening on Monday amid concerns over the possibility of a fresh round of easing by the Federal Reserve.
USD/CAD hit 0.9934 during U.S. morning trade, the session high; the pair subsequently consolidated at 0.9926, gaining 0.17%.
The pair was likely to find support at 0.9874, the low of March 21 and resistance at 0.9998, Monday’s high.
The greenback found support after a report showed that U.S. consumer confidence dipped slightly in March but remained close to the previous month’s one-year high.
The Conference Board’s index of consumer confidence dipped to 70.2 from a reading of 71.6 in February, but was better than expectations for a slip to 70.3.
The present situation Index, however, increased to a three-and-a-half year high of 51.0 from 46.4, while the expectations index declined to 83.0 from 88.4 in February.
But the greenback struggled to build on gains after an earlier report showed that the Standard & Poor’s/Case-Shiller U.S. house price index fell at an annualized rate of 3.8% in January from a year earlier, in line with expectations.
U.S. home prices in December were revised to a decline of 4.1% from a previously reported 4.0% drop.
The dollar came under broad selling pressure on Monday after Federal Reserve Chairman Ben Bernanke said that further monetary accommodation is needed to bring about big gains in the U.S. jobs market, which he described as “far from normal,” despite a recent improvement.
The loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD inching up 0.03% to hit 1.3238.
The euro remained under pressure on Tuesday, as concerns over Spanish borrowing costs weighed ahead of the country’s budget statement later in the week, amid fears that the government will pull back on imposing harsh austerity measures in the face of a looming recession.
Meanwhile, a report earlier showed that an index of German consumer confidence fell unexpectedly in March.
USD/CAD hit 0.9934 during U.S. morning trade, the session high; the pair subsequently consolidated at 0.9926, gaining 0.17%.
The pair was likely to find support at 0.9874, the low of March 21 and resistance at 0.9998, Monday’s high.
The greenback found support after a report showed that U.S. consumer confidence dipped slightly in March but remained close to the previous month’s one-year high.
The Conference Board’s index of consumer confidence dipped to 70.2 from a reading of 71.6 in February, but was better than expectations for a slip to 70.3.
The present situation Index, however, increased to a three-and-a-half year high of 51.0 from 46.4, while the expectations index declined to 83.0 from 88.4 in February.
But the greenback struggled to build on gains after an earlier report showed that the Standard & Poor’s/Case-Shiller U.S. house price index fell at an annualized rate of 3.8% in January from a year earlier, in line with expectations.
U.S. home prices in December were revised to a decline of 4.1% from a previously reported 4.0% drop.
The dollar came under broad selling pressure on Monday after Federal Reserve Chairman Ben Bernanke said that further monetary accommodation is needed to bring about big gains in the U.S. jobs market, which he described as “far from normal,” despite a recent improvement.
The loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD inching up 0.03% to hit 1.3238.
The euro remained under pressure on Tuesday, as concerns over Spanish borrowing costs weighed ahead of the country’s budget statement later in the week, amid fears that the government will pull back on imposing harsh austerity measures in the face of a looming recession.
Meanwhile, a report earlier showed that an index of German consumer confidence fell unexpectedly in March.