Investing.com - The U.S. dollar slipped lower against the Canadian dollar in thin trade on Monday, as concerns over recent weak U.S. economic data continued to cloud the outlook for the recovery.
USD/CAD hit session lows of 1.0953 and was last down 0.16% to 1.0960.
The pair was likely to find support at 1.0940, Friday’s low and a one-month low and resistance at 1.1025.
Market sentiment remained subdued after data on Friday showed that U.S. manufacturing output unexpectedly fell in January, as inclement winter weather continued to act as a drag on growth.
The data prompted some investors to wonder whether the Federal Reserve will slow the pace of reductions to its asset-buying stimulus program.
Trade volumes were expected to remain thin on Monday, with U.S. markets shut for the President’s Day holiday.
The Canadian dollar’s gain looked likely to remain limited after data on Friday showed that domestic manufacturing sales fell unexpectedly in December. The weak data supported the Bank of Canada’s dovish stance on the outlook for inflation and economic growth.
Elsewhere, the loonie, as the Canadian dollar is known, was slightly higher against the euro, with EUR/CAD slipping 0.13% to 1.5017.
Jerusalem Post Annual Conference. Buy it now, Special offer. Come meet Israel's top leaders