Forexpros – The U.S. dollar edged higher against its Canadian counterpart on Tuesday, as investors remained wary ahead of a European Union summit on Wednesday, amid speculation over whether leaders will agree on fresh measures to address the crisis besetting the euro zone.
USD/CAD hit 1.0188 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0180, inching up 0.06%.
The pair was likely to find support at 1.0137, Friday’s low and resistance at 1.0225, the high of the same day.
Trade remained subdued ahead of Wednesday’s EU summit, amid concerns over a divide between France’s new President Francois Hollande, who favors measures designed to support growth and pro-austerity Germany.
President Hollande was expected to propose the introduction of joint euro bonds at the summit, but Germany has repeatedly resisted the idea, arguing they would lessen pressure for heavily indebted countries to get their finances in order.
The loonie, as the Canadian dollar is sometimes known, was higher against the euro, with EUR/CAD shedding 0.44% to hit 1.2980.
Later in the day, the U.S. was to release industry data on existing home sales.
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