Foreign exchange - USD/CAD slips however stays close to greater than 11-year peak

Greenback slightly lower vs. loonie but remains supported

Investing.com – The U.S. dollar slipped lower against its Canadian counterpart on Tuesday, but remained within close distance of a more than 11-year peak as growth concerns and tensions in the Middle East dampened market sentiment.

hit 1.3898 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3939, edging down 0.09%.

The pair was likely to find support at 1.3811, Monday’s low and resistance at 1.4000, the high of December 18 and a more than 11-year peak.

Investors remained cautious after data on Monday showed that fell to 48.2 this month from 48.6 in December.

It was the lowest reading since September and was well below the 50-point level which separates expansion from contraction.

Markets were also jittery amid concerns over growing tensions in the Middle East after Saudi Arabia executed a prominent Shi’ite cleric, prompting a retaliatory attack on the Saudi embassy in Iran.

In Canada, data on Tuesday showed that the declined by 4.0% in November, disappointing expectations for a 3.0% slide, after a 0.4% rise the previous month.

The loonie was lower against the euro, with retreating 0.87% to 1.4981.

Earlier Tuesday, Eurostat reported that rose just 0.2% in December, matching November’s reading and falling short of forecasts for an increase of 0.3%.

, which strips out food and energy costs rose 0.9% in December, below forecasts for 1.0% and matching November’s reading.

The weak data added to pressure on the European Central Bank to step up measures to bolster price and economic growth in the single currency bloc. The ECB targets annual inflation of close to, but just below 2%.

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Foreign exchange - USD/CAD slips however stays close to greater than 11-year peak