Investing.com - The U.S. dollar edged lower against the Canadian dollar on Monday, as the pair continued to trade in a narrow range ahead of a series of key economic events later in the week.
USD/CAD was last trading at 1.1018, down slightly from 1.1038 on Friday.
The pair was likely to find support at 1.0999 and resistance at 1.1075.
The pair has traded in a relatively narrow range in recent sessions, with the greenback supported by indications that the U.S. economy is recovering. The loonie, as the Canadian dollar is also known, remained softer as the Bank of Canada’s dovish stance weighed.
In a speech late last week, BoC Governor Stephen Poloz said interest rates will stay low for longer, while inflation will remain below the central bank’s 2% target for at least another two years.
Market participants were looking ahead to the Federal Reserve’s rate statement on Wednesday in the hopes that it would provide the pair with clear direction to break out of its narrow trading range.
Meanwhile, Friday’s U.S. nonfarm payrolls report for April was expected to indicate that the recovery in the labor market is continuing.
Elsewhere, EUR/CAD was almost unchanged at 1.5273.
The euro was supported by expectations that the preliminary euro zone inflation report, due out on Wednesday, would show that consumer prices ticked higher this month, easing pressure on the European Central Bank to implement additional monetary policy measures.