Investing.com - The U.S. dollar was little changed against the Canadian dollar on Monday, as concerns over the outlook for global growth kept investors cautious, dampening demand for riskier assets.
USD/CAD was trading at 1.1272, almost unchanged for the day, holding below last Wednesday’s five year peaks of 1.1384.
Concerns over the outlook for global growth counted to cloud market sentiment after Germany’s Bundesbank said Monday that the country’s economy barely grew in the third quarter.
In its monthly report the German central bank said that while the euro zone’s largest economy was unlikely to enter a recession the economic outlook for the fourth quarter was cautious.
The ECB launched its new stimulus program on Monday, purchasing covered bonds in a bid to increase liquidity in the region.
Meanwhile, U.S. equities markets opened lower after quarterly results from IBM fell far short of forecasts, fuelling fears over the outlook for business spending.
The Canadian dollar showed little reaction after official data earlier Monday showed that Canadian wholesale sales increased by a seasonally adjusted 0.2% in August, meeting forecasts.
Market participants were looking ahead to Wednesday’s rate review by the Bank of Canada, with the bank expected to leave rates on hold at 1.0%.
Data on Friday showed that Canada’s country’s consumer price index rose 2.0% year-over-year in September, in line with the BoC’s target, after rising 2.1% in August.
Elsewhere, the loonie was steady against the euro, with EUR/CAD at 1.4380.