Investing.com – The U.S. dollar was almost unchanged against its Canadian counterpart on Tuesday, as market sentiment remained fragile despite better-than-expected U.S. inflation data, as concerns over the euro zone debt crisis weighed.
USD/CAD hit 1.0203 during early U.S. trade, the daily low; the pair subsequently consolidated at 1.0233, dipping 0.01%.
The pair was likely to find support at 1.0132, the low of October 12 and resistance at 1.0327, the high of the same day.
The U.S. Labor Department said producer prices rose more-than-expected in September, climbing 0.8% after a flat reading the previous month and above expectations for a 0.2% gain.
It was the largest increase in five months but the report said the increase in inflation was in large part due to surging gasoline prices, which were unlikely to spark a broad increase in inflation pressures.
But concerns over the euro zone debt crisis intensified after ratings agency Moody’s placed France’s triple-A credit rating on review and after a report earlier showed that an index of German economic sentiment fell to a three-year low this month.
The report came a day after hopes for a comprehensive solution to the euro zone's financial woes were quashed when Germany’s finance minister said the October 23 EU summit would not provide a "definitive solution" to the region's debt crisis.
Meanwhile, the Canadian dollar was higher against the euro, with EUR/CAD shedding 0.55% to hit 1.3981.
Later in the day, Federal Reserve Chairman Ben Bernanke was due to speak at an event in Boston.
USD/CAD hit 1.0203 during early U.S. trade, the daily low; the pair subsequently consolidated at 1.0233, dipping 0.01%.
The pair was likely to find support at 1.0132, the low of October 12 and resistance at 1.0327, the high of the same day.
The U.S. Labor Department said producer prices rose more-than-expected in September, climbing 0.8% after a flat reading the previous month and above expectations for a 0.2% gain.
It was the largest increase in five months but the report said the increase in inflation was in large part due to surging gasoline prices, which were unlikely to spark a broad increase in inflation pressures.
But concerns over the euro zone debt crisis intensified after ratings agency Moody’s placed France’s triple-A credit rating on review and after a report earlier showed that an index of German economic sentiment fell to a three-year low this month.
The report came a day after hopes for a comprehensive solution to the euro zone's financial woes were quashed when Germany’s finance minister said the October 23 EU summit would not provide a "definitive solution" to the region's debt crisis.
Meanwhile, the Canadian dollar was higher against the euro, with EUR/CAD shedding 0.55% to hit 1.3981.
Later in the day, Federal Reserve Chairman Ben Bernanke was due to speak at an event in Boston.