TheNews

USD/CAD little changed in rangebound trade

The U.S. dollar was almost unchanged against the Canadian dollar on Wednesday, as trade remained subdued without any significant economic data to give investors a clear direction.

USD/CAD was last trading at 1.0902 and was moving in a range of 1.0894 to 1.0922.

The pair was likely to find support at 1.0875 and resistance at 1.0925, Tuesday's high.

The pair showed little reaction after data released earlier Wednesday showed that U.S. producer prices rose more than expected in April, while core prices also beat expectations.

U.S. producer prices increased by 0.6% last month the Commerce Department said, above forecasts for a 0.2% gain, after rising 0.5% in March.

The producer price index rose at an annualized rate of 2.1% in April, above expectations for a 1.7% increase and up from 1.4% in the preceding month.

The core producer price index advanced 0.5% last month, compared to expectations for a 0.2% increase, and was up 1.9% from a year earlier.

Elsewhere, the loonie, as the Canadian dollar is also known, was almost flat against the euro, with EUR/CAD at 1.4947.

The euro came under renewed selling pressure on Wednesday following reports that the European Central Bank is preparing to cut rates next month.

Reuters reported that the ECB is preparing a "package of measures" including cuts to all interest rates, with negative rates on bank deposits, as well as measures to bolster lending to small and medium size businesses.

The report came one day after the Wall Street Journal reported the Germany's Bundesbank would back monetary easing measures by the ECB if they were needed to keep low levels of inflation from becoming entrenched in the region.

Later last week, the ECB indicated that it could ease monetary policy as soon as its next meeting in June, to stop inflation in the euro zone from falling too low.