Investing.com – The Canadian dollar modestly trimmed gains against its U.S. counterpart on Tuesday, as soft U.S. retail sales data weighed on the outlook for the U.S. economic recovery.
USD/CAD pulled back from 0.9849, the daily low, to hit 0.9871 during European afternoon trade, shedding 0.17%.
The pair was likely to find support at 0.982, Monday’s low and resistance at 0.9985, Friday’s high.
Earlier in the day, official data showed U.S. retail sales rose in January for the seventh straight month, but the increase was smaller than expected.
Retail sales rose by 0.3% compared with a revised gain of 0.5% in December, disappointing expectations for a 0.5% increase.
Consumer spending is seen as a key element in the economic recovery in the U.S., Canada’s major trading partner.
U.S. import prices, meanwhile, rose much more than expected in January as costs increased for energy, food, and industrial supplies.
And New York manufacturing activity continued to expand in February but price pressures rose, further squeezing profit margins, according to the Federal Reserve Bank of New York's Empire State Manufacturing Survey.
The loonie was almost unchanged against the euro, with EUR/CAD easing up 0.02% 1.3345.
Also Tuesday, official data showed that U.S. Treasury International Capital purchases fell unexpectedly in December.
USD/CAD pulled back from 0.9849, the daily low, to hit 0.9871 during European afternoon trade, shedding 0.17%.
The pair was likely to find support at 0.982, Monday’s low and resistance at 0.9985, Friday’s high.
Earlier in the day, official data showed U.S. retail sales rose in January for the seventh straight month, but the increase was smaller than expected.
Retail sales rose by 0.3% compared with a revised gain of 0.5% in December, disappointing expectations for a 0.5% increase.
Consumer spending is seen as a key element in the economic recovery in the U.S., Canada’s major trading partner.
U.S. import prices, meanwhile, rose much more than expected in January as costs increased for energy, food, and industrial supplies.
And New York manufacturing activity continued to expand in February but price pressures rose, further squeezing profit margins, according to the Federal Reserve Bank of New York's Empire State Manufacturing Survey.
The loonie was almost unchanged against the euro, with EUR/CAD easing up 0.02% 1.3345.
Also Tuesday, official data showed that U.S. Treasury International Capital purchases fell unexpectedly in December.