On Tuesday, the US dollar increased against the Canadian opponent, as the decline in oil prices weighed on demand for raw dollar of Canada.
At the beginning of the American session, USD/CAD reached 1.4040, the peak of the day, and subsequently consolidated at 1.4056, gaining 0.80%.
The pair is likely to find support at 1.3904, Monday's low, and resistance at 1.4124, the high of January 28.
On Tuesday, oil prices dropped more than 5% to $ 30 after Iran said it plans to increase oil exports to 2.3 million barrels per day during the fiscal year, which starts on 21 March.
Meanwhile, investors remained cautious amid concerns about global economic growth after data on Monday showed a reduction of manufacturing activity in China in January for sixth consecutive month.
Sentiment on the dollar remains unstable after data showed that manufacturing activity in the US in January declined to levels from July 2009, while US consumer spending remained unchanged in December.
The Canadian dollar fell sharply against the euro; EUR/CAD jumped 1.22% to 1.5366.
Euro also rose against its main rival. EUR/USD was up 0.23% to 1.0912.
Earlier on Tuesday, a report from Eurostat showed that the unemployment rate in the Eurozone fell to a seasonally adjusted 10.4% from 10.5% in November. It was the lowest since September 2011. Analysts had expected in December the unemployment rate unchanged.
The report came shortly after the German Federal Bureau of Statistics announced that the unemployment rate fell in January to 6.2% from 6.3% a month earlier. Analysts predicted that the unemployment rate will remain at the previous level of 6.3%.
Euro was also up against the pound: EUR/GBP rose to 0.7617 from 0.7600. Markit said that UK index of purchasing managers in the construction fell to 55.0 last month from December's 57.8. Economists had expected a smaller decline: to 57.5.
Weak growth of new business slowed down the pace of production and recruitment at the beginning of 2016, the number of jobs created has fallen almost to the 2.5-year low.
Construction companies reported the lowest confidence index from December 2014.