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Forex - USD/CAD little changed in subdued trade

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Investing.com - The U.S. dollar edged higher against the Canadian dollar in quiet trade on Tuesday, as market sentiment remained subdued after weak data out of the euro zone, while concerns over the outlook for U.S. fiscal negotiations also weighed.

USD/CAD hit 0.9881 during early U.S. trade, the session high; the pair subsequently consolidated at 0.9863, inching up 0.05%.

The pair was likely to find support at 0.9835, the low of January 2 and resistance at 0.9842, the high of January 3.

Earlier in the day official data showed that the unemployment rate in the euro zone hit a new record high of 11.8% in November, up from 11.7% in October, underlining concerns over the outlook for the economic recovery in the region.

Elsewhere in the euro zone, the European Stability Mechanism, the region's permanent bailout fund, successfully sold EUR1.92 billion of short-term debt in its first debt auction on Tuesday.

Overall market sentiment remained cautious amid uncertainty about continuing political wrangling in Washington over further U.S. budget cuts and raising the U.S. debt ceiling.

The loonie, as the Canadian dollar is also known, was slightly higher against the euro, with EUR/CAD slipping 0.13% to 1.2913.

Later in the day, the U.S. was to release private sector data on economic optimism, as well as official data on consumer credit.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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