Investing.com - The U.S. dollar was almost unchanged against the Canadian dollar on Tuesday as the pair continued to trade in recent narrow range with no fresh economic data to provide investors with direction.
USD/CAD touched session lows of 1.0891 and was last trading at 1.0906, unchanged for the day.
The pair was likely to find support at 1.0845 and resistance at 1.0946, Friday’s high.
Demand for the greenback continued to be underpinned by higher U.S. Treasury yields. The yield on the U.S. 10-Year Treasury note rose to 2.63% on Tuesday, its highest in a month.
The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.19% to an almost one-week high of 80.81.
Recent economic data from the U.S. has indicated that the economy is shaking off the effects of the harsh winter, bolstering the outlook for the broader recovery. The latest U.S. jobs report on Friday showed that the economy added jobs for the fourth successive month in May, with employment returning to its pre-recession peak.
Elsewhere, the broadly weaker euro fell to one-week lows against the loonie, as the Canadian dollar is also known, with EUR/CAD down 0.33% to 1.4373.
The single currency remained under pressure after the European Central Bank’s announcement last week of a fresh package of measures to tackle low inflation and stimulate growth in the euro area.
The ECB cut all its main rates to record lows on Thursday and for the first time imposed negative deposit rates on commercial lenders, in a bid to stimulate lending to businesses.
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