Investing.com - The U.S. dollar was hovering close to its lowest levels of the year against the Canadian dollar on Tuesday as concerns over the outlook for U.S. growth weighed.
USD/CAD was down 0.15% to 1.0654, not far from Monday’s lows of 1.0645, the weakest since January 6.
The pair was likely to find support at 1.0600 and resistance at 1.0695, Monday’s high.
The greenback has come under pressure since data last week showing a 2.9% economic contraction in the first quarter bolstered expectations that the Federal Reserve will keep rates on hold for an extended period.
Speaking Monday, San Francisco Fed President John Williams underlined this view, saying the bank will probably need to hold interest rates near zero for at least another year, despite signs that the economy is improving.
The dollar shrugged off data on Monday showing that U.S. pending home sales rose to an eight-month high in May, jumping 6%.
Investors were turning their attention to the U.S. nonfarm payrolls report, due to be released one day early on Thursday ahead of the Independence Day holiday, for further indications on the strength of the labor market.
Market watchers were also looking ahead to a report on U.S. manufacturing activity, scheduled to be released later in the trading day.
Markets in Canada were remaining closed on Tuesday for the Canada Day holiday.
Elsewhere, the loonie, as the Canadian dollar is also known, pushed higher against the euro, with EUR/CAD slipping 0.17% to 1.4583.
In the euro zone, data on Tuesday indicated that the manufacturing recovery in the euro area is losing momentum.
Revised data showed that the euro zone’s manufacturing PMI dipped to a seven-month low of 51.8 in June from 52.2 in May. Growth in the German factory sector slowed to an eight month low, while the French manufacturing index fell to a six-month low.
A separate report showed that the region’s unemployment rate ticked down to 11.6% in May, revised from the initial reading of 11.7%.