Investing.com - The U.S. dollar edged lower against its Canadian counterpart in thin trade on Monday, but remained supported by expectations for the Federal Reserve to continue tapering its stimulus program this year.
USD/CAD hit 1.0930 during early U.S. trade, the pair''s lowest since January 17; the pair subsequently consolidated at 1.0950, slipping 0.12%.
The pair was likely to find support at 1.0879, the low of January 14 and short-term resistance at 1.0983, the high of January 17.
The greenback remained supported after recent U.S. economic data last week reinforced expectations that the recovery is strong enough for the Federal Reserve to make further reductions to its asset purchase program at its policy meeting later in the month.
Meanwhile, the loonie remained under pressure amid expectations that the Bank of Canada will stick to its dovish stance on rates at this week’s policy meeting.
The loonie was little changed against the euro, with EUR/CAD inching up 0.02% to 1.4848.
Trade volumes were expected to remain thin on Monday, with U.S. markets closed for a holiday.