Investing.com - The U.S. dollar was almost unchanged against the Canadian dollar on Monday as investors continued to digest Friday’s mixed bag of U.S. data ahead of Federal Reserve meeting minutes later in the week.
USD/CAD was trading at 1.0861 and was moving in a range of 1.0851 to 1.0867.
The pair was likely to find support at 1.0815 and resistance at 1.0887, Friday’s high.
Investors remained cautious ahead of the minutes from the Fed’s latest monetary policy meeting, due for release on Wednesday, as they awaited insight on the central bank's view of the economy.
Data on Friday showed that U.S. housing starts recorded the largest increase in five months in April, indicating that the economy is shaking off the effect of a weather related slowdown over the winter.
However, the upbeat housing data was overshadowed by a report showing that consumer confidence in the U.S. deteriorated this month.
Meanwhile, heightened geopolitical tensions in Ukraine and Libya weighed on risk appetite.
Clashes between Ukrainian government forces and pro-Russian separatists in the east of the country continued on Monday, resulting in the death of one Ukrainian soldier.
Elsewhere, the situation in Lydia remained tense on Monday after gunmen stormed the parliament on Sunday, in some of the worst violence the country has seen since the 2011 war against Muammar Qaddafi.
The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.19% to 1.4908.
The euro’s gains were held in check amid mounting expectations for fresh monetary easing by the European Central Bank at its next meeting in June, to safeguard the recovery in the euro zone and stop inflation from falling too low.