Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Monday, but gains were capped as investors remained cautious ahead of Federal Reserve Chairman Janet Yellen''s testimony on the bank’s semiannual monetary policy report on Tuesday.
USD/CAD hit 1.1052 during European afternoon trade, the session high; the pair subsequently consolidated at 1.1049, adding 0.14%.
The pair was likely to find support at 1.0954, the low of January 22 and resistance at 1.1122, the high of February 6.
The dollar remained under pressure after the Labor Department on Friday said the U.S. economy added 113,000 jobs in January, well below expectations for 185,000 new jobs, as inclement weather contributed to the slowdown in hiring.
The report also showed that the number of people participating in the labor force edged up to 63% from a 30-year low of 62.8% last month, while the unemployment rate unexpectedly ticked down to a five year low 6.6% from 6.7% in December.
The report was seen as unlikely to prompt the Fed to halt reductions in its stimulus program. The bank announced a second cut to its asset purchase program in January, trimming it to $65 billion-per-month.
The loonie was lower against the euro, with EUR/CAD edging up 0.18% to 1.5067.
In the euro zone, official data showed that French industrial production fell 0.3% in December, compared to expectations for a 0.1% uptick. Industrial production in November was revised down to a 1.2% increase from a previously estimated 1.3% rise.
Trading volumes were expected to remain light, with no U.S. economic reports to be released throughout the session.