Investing.com - The U.S. dollar trimmed gains against its Canadian counterpart on Tuesday, but remained supported as persistant concerns over global economic growth continued to support safe-haven demand.
USD/CAD pulled away from 1.1258, the pair's highest since October 6, to hit 1.1228 during early U.S. trade, still up 0.27%.
The pair was likely to find support at 1.1168, Monday's low and resistance at 1.1266, the high of October 6.
The greenback remained broadly supported after the International Monetary Fund cut its forecasts for global growth in 2014 and 2015 last week and warned that global growth may never reach its pre-crisis levels ever again.
Adding to investors' concerns, data on Tuesday showed that German economic sentiment deteriorated to the lowest level since December 2012 in October.
The ZEW Centre for Economic Research said that its index of German economic sentiment fell by 10.5 points to minus 3.6 this month from September’s reading of 6.9.
A separate report showed that industrial production in the euro zone declined 1.8% in August, confounding expectations for a 1.6% fall.
Markets were also jittery amid the widening Ebola epidemic. The U.K. announced on Monday that it will begin conducting fever tests for Ebola at Heathrow airport, after Health Secretary Jeremy Hunt said it is likely that the virus will be diagnosed in the U.K. by end of year.
The loonie was higher against the euro, with EUR/CAD dropping 0.51% to 1.4211.