© Reuters. The greenback is gaining ground against loonie, but upside limited
Investing.com — The U.S. dollar edged slightly higher against its Canadian counterpart on Monday, as investors eyed the Federal Reserve’s upcoming policy meeting this week and as positive data from Canada has little to support the local currency.
USD/CAD was up 0.10% to 1.2203 by 09: 30 ET (13:30 GMT).
The greenback slightly recovered from losses posted on Friday after data showed that U.S. industrial and manufacturing production unexpectedly fell in August.
In addition, the U.S. Commerce Department said retail sales unexpectedly fell 0.2% in August.
Later this week, the Fed should leave interest rates unchanged, but it could give indications on when it plans to start unwinding its balance sheet.
In Canada, data on Monday showed that foreign securities purchases rose by C$23.95 billion in July, blowing past expectations for a C$4.46 billion increase. Foreign securities purchases dropped by C$860,000 in June, whose figure was revised from a previously estimated C$920,000 of the fall.
Foreign securities purchases by Canadians has decreased from C$1.83 billion in July, after rising a revised C$13.31 billion in the previous month.
The basic products of the Canadian dollar gains were capped by a slide in oil prices on Monday, as traders locked in profits on the commodity’s recent rally of several months of high.
The loonie was lower against the euro, with EUR/CAD edging up 0.10% to 1.4580.