Investing.com - The Canadian dollar edged higher against its U.S. counterpart on Monday but gains were capped as weakness in oil prices and uncertainty over a travel ban implemented by U.S. President Donald Trump weighed.
USD/CAD was down 0.13% at 1.3136, not far from intra-day lows of 1.3118.
The greenback remained on the back foot after Trump signed an executive order on Friday that curbed immigration from seven predominantly Muslim countries, underlining concerns over the destabilizing impact of the new administration's protectionist policies.
The order triggered legal challenges, international criticism, widespread protests and confusion over its implementation at airports.
Sentiment on the greenback was also hit by data on Friday showing a sharp slowdown in U.S. fourth quarter growth prompted speculation that the Federal Reserve will avoid hiking interest rates too quickly.
The Fed, which is to hold its next policy meeting on Wednesday, isn’t expected to raise interest rates, but investors are keen to hear how it views the economy and the future path of interest rates.
Data on Monday showed that U.S. consumer spending rose solidly in December, rising 0.5% after a 0.2% increase in November.
Personal income rose 0.3% last month after edging up 0.1% in November.
A separate report showed that U.S. pending home sales rose by 1.6% in December, ahead of forecasts for a 1.1% increase.
Meanwhile, prices of oil, a major Canadian export, remained weak after a report showing an increase in the number of active U.S. oil rigs last week added to concerns about oversupply at a time when major producers are cutting output in a bid to support the market.
Data from Baker Hughes showed U.S. drillers added 15 oil rigs last week, taking the total to its highest since November 2015.