Investing.com - The U.S. dollar slid lower against its Canadian counterpart on Monday, as sentiment on the greenback remained vulnerable amid uncertainty over the timing of a U.S. rate hike and markets eyed the release of U.S. home sales data due later in the day.
USD/CAD hit 1.2536 during early U.S. trade, the pair's lowest since March 19; the pair subsequently consolidated at 1.2521, shedding 0.25%.
The pair was likely to find support at 1.2453, the low of March 6 and resistance at 1.2726, Friday's high.
The greenback remained under pressure amid uncertainty over the path of U.S. monetary policy after the Federal Reserve downgraded its forecasts for growth and inflation and lowered its interest rate projections last week.
However, despite the past week’s reversal the greenback was likely to continue to strengthen, with the Fed still expected to raise interest rates ahead of other central banks.
The Canadian dollar had found support after data on Friday showed that Canada's consumer prices rose 0.9% last month, more than the expected 0.7% increase.
A separate report showed that retail sales dropped 1.7% in January, compared to expectations for a 0.7% fall, while core retail sales, which exclude automobiles, declined 1.8% in January, exceeding the expected 0.4% slip.
The loonie was lower against the euro, with EUR/CAD climbing 0.73% to 1.3681.
Later in the day, the U.S. was to release a report on existing home sales.