USD/CAD edges lower in subdued trad

The U.S. dollar edged lower against the Canadian dollar on Tuesday, as the pair remained locked in a narrow range with a light news flow following the Easter weekend.

USD/CAD was last trading at 1.1004 and was moving in a range of 1.1024 and 1.1001.

The pair was likely to find support at 1.0958, the low of April 16 and resistance at 1.1030, Monday’s high.

The pair showed little reaction after Statistics Canada reported that wholesale sales rose 1.1% in February, the largest increase since July 2013, to C$50.67 billion, following a downwardly revised 0.5% gain in January.

Market expectations had been for an increase of 0.7% in February.

The U.S. was to release data on existing homes sales later in the trading day.

Elsewhere, the loonie, as the Canadian dollar is also known, was slightly lower against the euro, with EUR/CAD rising 0.13% to 1.5208.

The euro’s gains were checked after the European Central Bank recently stepped up warnings that continued gains in the currency could trigger fresh stimulus measures.

On Tuesday, ECB Executive Board member Benoit Coeure said the bank still had room to lower its key interest rates.

“We have several instruments in the event that it is necessary to loosen monetary policy. We still have room to cut the key interest rate,' he said.

Coeure also said the strong euro 'risks slowing the return of inflation to a level close to and below 2%, which is our definition of price stability.' He said it was 'certain' that appreciation of the euro since mid-2012 had contributed to the low level of current inflation.