Investing.com - The U.S. dollar was little changed against its Canadian counterpart on Monday, as persistant concerns over the outlook for global economic growth supported the safe-haven greenback, although risk sentiment mildly improved on news of progress on the Ukrainian front.
Trading volumes were expected to be thin on Monday, as markets in Canada were to remain closed for the Thanksgiving holiday while U.S. markets would be closed for Columbus Day.
USD/CAD hit 1.1220 during early U.S. trade, the session high; the pair subsequently consolidated at 1.1198, inching up 0.01%.
The pair was likely to find support at 1.1157, the low of October 10 and resistance at 1.1266, the high of October 6.
Market sentiment found some support following reports Russian President Vladimir Putin ordered his troops to withdraw from their training exercises near the Ukraine border on Sunday.
But investors remained cautious after the International Monetary Fund cut its forecasts for global growth in 2014 and 2015 last week and warned that global growth may never reach its pre-crisis levels ever again.
Manwhile, the greenback remained under pressure after the minutes of the U.S. Federal Reserve's September meeting last week prompted investors to push back the expected timing of a Fed rate hike.
On Friday, Fed Vice Chairman Stanley Fischer said weaker-than-expected global growth could prompt it to slow the pace of eventual interest rate hikes.
The loonie was also lower against the euro, with EUR/CAD advancing 0.53% to 1.4209.
Sentiment on the euro remained vulnerable amid fears that Germany, the euro zone’s largest economy is being dragged into a recession after recent data indicated unexpected weakness in manufacturing and exports.
Data released on Thursday showed that German exports fell 5.8% in August, and this followed weak industrial output figures on Tuesday.