USD/CAD modestly higher after Canadian retail sales

The U.S. dollar moved modestly higher against the Canadian dollar on Wednesday, following the release of lackluster Canadian retail sales data for February.

USD/CAD was last trading at 1.1042, up from 1.1028 ahead of the data.

The pair was likely to find support at 1.0999, Tuesday’s low and resistance at 1.1075.

The pair showed a muted reaction after Statistics Canada reported that retail sales rose 0.5% in February, in line with analysts’ forecasts, slowing from a downwardly revised increase of 0.9% in January.

Core retail sales, which exclude automobile sales, rose 0.6%, in line with expectations.

The pair has traded in a relatively narrow range this week, with the greenback supported by indications that the U.S. economy is recovering. The loonie, as the Canadian dollar is also known, remained softer as the Bank of Canada’s dovish stance weighed.

Elsewhere, EUR/CAD was last up 0.38% to 1.5280.

The euro was boosted after data on Wednesday showed that the euro zone manufacturing purchasing managers’ index rose to 53.3 this month from 53.0 in March, compared to expectations for an unchanged reading.

The bloc’s services PMI rose to 53.1 from 52.2 the previous month, better then forecasts for 52.4.

The recovery in Germany, the euro zone’s largest economy accelerated this month, with activity in both the manufacturing and service sector strengthening, but growth in the French private sector lost momentum this month.