Forexpros - The U.S. dollar dipped against the Canadian dollar on Tuesday, trading close to a four-month low, as investors awaited more details of the European Central Bank’s bond purchasing program.
USD/CAD hit 0.9843 during early U.S. trade, the pair’s lowest since August 28; the pair subsequently consolidated at 0.9852, edging down 0.05%.
The pair was likely to find support at 0.9803, the low of April 30 and resistance at 0.9877, Monday’s high.
Overall market sentiment continued to be underpinned by expectations that the ECB will announce details of measures to help stabilize the region’s sovereign debt markets after its upcoming policy setting meeting on Thursday.
Market participants were also anticipating next week’s Federal Reserve meeting, amid ongoing speculation over how close the U.S. central bank is to implementing another round of easing.
Investors were awaiting U.S. government data on non-farm payrolls on Friday, to see if the labor market has improved.
The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD rising 0.21% to 1.2387.
Later in the day, the Institute for Supply Management was to release a closely watched report on U.S. manufacturing activity.
