Investing.com - The U.S. dollar was little changed against the Canadian dollar in early trade on Tuesday, as investors remained cautious amid concerns over the outlook for the U.S. economic recovery.
USD/CAD hit 1.0272 during early U.S. trade, the lowest since Friday; the pair subsequently consolidated at 1.0287, inching up 0.03%.
The pair was likely to find short-term support at 1.0261, the low of September 20 and resistance at 1.0309, Monday’s high.
Concerns over the outlook for the U.S. recovery mounted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Speaking Monday, Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
Investors were looking ahead to U.S. data on consumer confidence later in the trading day.
The Canadian dollar showed little reaction after data released on Tuesday showed that domestic retail sales missed expectations in July.
Statistics Canada said retail sales were 0.6% higher in July, below forecasts for a 1% gain. Core retail sales were up 1%, in line with forecasts.
The loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD dipping 0.01% to 1.3875.
In the euro zone, a report showed that German business confidence improved in September, but to a lower than expected level.
The German Ifo business climate index ticked up to 107.7 from 107.6 in August, the highest level since March 2012 but still below expectations for a reading of 108.2.
The single currency remained under pressure after European Central Bank President Mario Draghi said Monday the bank is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.
USD/CAD hit 1.0272 during early U.S. trade, the lowest since Friday; the pair subsequently consolidated at 1.0287, inching up 0.03%.
The pair was likely to find short-term support at 1.0261, the low of September 20 and resistance at 1.0309, Monday’s high.
Concerns over the outlook for the U.S. recovery mounted after New York Federal Reserve President William Dudley defended last week’s decision by the Fed to keep its stimulus program on track.
Speaking Monday, Dudley said the pace of the U.S. economic recovery remains insufficient to start tapering the bank’s USD85 billion-a-month asset purchase program.
The Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program. The decision surprised markets, which had been expecting a modest reduction to the bank’s stimulus program.
Investors were looking ahead to U.S. data on consumer confidence later in the trading day.
The Canadian dollar showed little reaction after data released on Tuesday showed that domestic retail sales missed expectations in July.
Statistics Canada said retail sales were 0.6% higher in July, below forecasts for a 1% gain. Core retail sales were up 1%, in line with forecasts.
The loonie, as the Canadian dollar is also known, was almost unchanged against the euro, with EUR/CAD dipping 0.01% to 1.3875.
In the euro zone, a report showed that German business confidence improved in September, but to a lower than expected level.
The German Ifo business climate index ticked up to 107.7 from 107.6 in August, the highest level since March 2012 but still below expectations for a reading of 108.2.
The single currency remained under pressure after European Central Bank President Mario Draghi said Monday the bank is ready to inject a third round of liquidity into the region’s banks if needed, in order to safeguard the bloc’s recovery.