Forexpros – The U.S. dollar was little changed against the Canadian dollar in subdued trade on Monday, as investors awaited Federal Reserve minutes and economic data due later in the week to give clear direction to markets.
USD/CAD hit 0.9876 during early U.S. trade, the session low; the pair subsequently consolidated at 0.9890, inching up 0.01%.
The pair was likely to find near-term support at 0.9859, last Thursday’s low and a three month low and resistance at 0.9934, the high of August 15.
Market participants were looking ahead to the minutes of the Fed’s August policy meeting on Wednesday, amid speculation over how close the U.S. central bank may be to implementing another round of stimulus measures.
Market sentiment was boosted earlier, after German magazine Der Spiegel reported that the ECB may set an interest rate threshold on purchases of euro-area sovereign debt at its next policy meeting in September, beyond which its bond buying program would be activated.
However, the ECB dismissed the report, saying it was “absolutely misleading” to report on decisions that have not yet been taken and added that it would act “strictly within its mandate”.
The loonie, as the Canadian dollar is also known, was slightly higher against the euro, with EUR/CAD slipping 0.15% to 1.2177.
Trade looked likely to remain subdued on Monday, with no significant economic data releases on the calendar, while volumes were light with many market participants on summer holidays.
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