Investing.com - The U.S. dollar was steady close to one-and-a-half month highs against the Canadian dollar on Tuesday after weak U.S. retail sales data underlined the view that the Federal Reserve will delay plans to start reducing stimulus measures.
USD/CAD hit 1.0455 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0436, dipping 0.08%.
The pair was likely to find support at 1.0409, the low of October 25 and resistance at 1.0459, Friday’s high and a one-and-a-half month high.
Data released on Tuesday showed that U.S. retail sales fell 0.1% in September, compared to expectations for a 0.1% increase. Core retail sales, which exclude automobile sales, edged up 0.4% last month, in line with expectations.
A separate report showed that U.S. producer price inflation ticked down 0.1% in September, missing forecasts for a 0.2% increase. Core inflation edged up 0.1%, in line with expectations.
The data did little to alter expectations that the Fed will maintain its stimulus program well into the first quarter of next year, in order to safeguard the economic recovery following the recent 16-day government shutdown.
The U.S. was to release a report on consumer confidence later in the trading day.
Demand for the greenback was underpinned by the view that markets have already priced in expectations that the Fed will make no changes to monetary policy following its monthly meeting on Wednesday.
In Canada, data on Tuesday showed that the raw materials price index fell 1.5% from a month earlier in September, more than expectations for a 1% drop.
The Canadian dollar remained broadly weaker after the Bank of Canada dropped language referring to the need for future rate hikes from its monetary policy statement last week and cut its outlook for economic growth.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD sliding 0.19% to 1.4370.
USD/CAD hit 1.0455 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0436, dipping 0.08%.
The pair was likely to find support at 1.0409, the low of October 25 and resistance at 1.0459, Friday’s high and a one-and-a-half month high.
Data released on Tuesday showed that U.S. retail sales fell 0.1% in September, compared to expectations for a 0.1% increase. Core retail sales, which exclude automobile sales, edged up 0.4% last month, in line with expectations.
A separate report showed that U.S. producer price inflation ticked down 0.1% in September, missing forecasts for a 0.2% increase. Core inflation edged up 0.1%, in line with expectations.
The data did little to alter expectations that the Fed will maintain its stimulus program well into the first quarter of next year, in order to safeguard the economic recovery following the recent 16-day government shutdown.
The U.S. was to release a report on consumer confidence later in the trading day.
Demand for the greenback was underpinned by the view that markets have already priced in expectations that the Fed will make no changes to monetary policy following its monthly meeting on Wednesday.
In Canada, data on Tuesday showed that the raw materials price index fell 1.5% from a month earlier in September, more than expectations for a 1% drop.
The Canadian dollar remained broadly weaker after the Bank of Canada dropped language referring to the need for future rate hikes from its monetary policy statement last week and cut its outlook for economic growth.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD sliding 0.19% to 1.4370.