Investing.com - The U.S. dollar was steady against its Canadian counterpart on Tuesday, hovering close to three-month lows as the greenback weakened ahead of a report on U.S. consumer confidence due later in the day and the Federal Reserve's policy statement expected on Wednesday.
USD/CAD hit 1.2050 during early U.S. trade, the pair's lowest since January 20; the pair subsequently consolidated at 1.2090.
The pair was likely to find support at 1.1931, the low of January 20 and resistance at 1.2195, Monday's high.
Traders were looking ahead to the S&P/Case Shiller housing index and a report on U.S. consumer confidence later in the day for further indications on the strength of the recovery, ahead of Wednesday’s Federal Reserve policy announcement.
Recent disappointing data on employment, home sales and industrial production have prompted investors to scale back expectations on the timing of a first rate hike by the U.S. central bank, sending the dollar lower.
Meanwhile, Bank of Canada Governor Stephen Poloz said he expects a strong recovery in the second half of this year, boosted by strong U.S. demand in non-energy exports and a lower Canadian dollar.
Mr. Poloz also said that the Canadian economy most likely posted no growth in the first quarter.
The remarks were part of the BoC governor's opening statement to a committee of lawmakers in the Canadian parliament's lower house.
The loonie was lower against the euro, with EUR/CAD rising 0.33% to 1.3207.
The euro found support after Greek Prime Minister Alexis Tsipras reshuffled the team handling talks with the country’s international lenders, fuelling optimism that a deal will be reached by early May.