Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Monday, after the release of positive U.S. personal spending data and as concerns over tensions between Ukraine and Russia continued to support safe haven demand.
USD/CAD hit 1.1110 during early U.S. trade, the session high; the pair subsequently consolidated at 1.1087, adding 0.21%.
The pair was likely to find support at 1.1003, the low of February 11 and resistance at 1.1160, the high of February 27.
The Commerce Department said that U.S. personal spending rose 0.4% in January, above expectations for an increase of 0.1%. Personal spending for December was revised down to a 0.1% gain from a previously reported increase of 0.4%.
The report also showed personal income rose 0.3%, beating expectations for a 0.2% increase, after a flat reading in December.
In Canada, data showed that the raw materials purchase price index increased by 2.6% in January, blowing past expectations for a 1% gain. The raw material price index rose by 1.8% in December, whose figure was revised from a previously reported increase of 1.9% decline.
Meanwhile, market sentiment remained under pressure amid tensions over the unfolding crisis in the Ukraine sparked a broad based selloff in risk assets, following Russian President Vladimir Putin’s decision to send troops into the Crimea region over the weekend.
Ukraine''s interim government has called for more international support to force Russian troops to leave.
The move sparked fears that the West will impose economic and diplomatic sanctions on Russia. Russia’s central bank hiked interest rates from 5.5% to 7% on Monday, after the rouble fell to new record lows against the euro and dollar.
The loonie was little changed against the euro, with EUR/CAD inching up 0.02% to 1.5270.
In the euro zone, data on Monday confirmed that the region’s manufacturing purchasing managers’ index declined to 53.2 in February from 54.0 in January. It was the first dip in five months, highlighting the fragile nature of the recovery in the euro area.
The rate of decline in France’s manufacturing sector eased in February, while activity in Germany’s manufacturing sector rose for the eighth straight month.
The euro remained supported after euro zone inflation data late last week eased pressure on the European Central Bank to tighten monetary policy at its upcoming meeting on Thursday.
Later in the day, the Institute of Supply Management was to release data on manufacturing activity.
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