Investing.com – The U.S. dollar extended early gains against its Canadian counterpart on Tuesday, soaring to a 13-day high after the Bank of Canada left its benchmark interest rate unchanged.
USD/CAD hit 1.0350 during European afternoon trade, that pair’s highest since September 30; the pair subsequently consolidated at 1.3338, jumping 1.64%.
The pair was likely to find support at 1.0116, Monday’s low and resistance at 1.0378, the high of September 23.
Earlier in the day, the BOC left its benchmark interest rate unchanged at 1.0% in October, in line with expectations. In a statement, the bank said that the economic outlook for Canada had changed. The bank said it now expects the economic recovery to be more gradual, with growth of 3.0% in 2010, 2.3% in 2011, and 2.6% in 2012.
The bank also said that heightened tensions in currency markets and related risks associated with global imbalances could result in a more protracted and difficult global recovery.
The loonie was also down against the euro, with EUR/CAD surging 0.86% to hit 1.4295.
Also Tuesday, official data showed that U.S. building permits fell unexpectedly in October while housing starts rose more-than-expected.
USD/CAD hit 1.0350 during European afternoon trade, that pair’s highest since September 30; the pair subsequently consolidated at 1.3338, jumping 1.64%.
The pair was likely to find support at 1.0116, Monday’s low and resistance at 1.0378, the high of September 23.
Earlier in the day, the BOC left its benchmark interest rate unchanged at 1.0% in October, in line with expectations. In a statement, the bank said that the economic outlook for Canada had changed. The bank said it now expects the economic recovery to be more gradual, with growth of 3.0% in 2010, 2.3% in 2011, and 2.6% in 2012.
The bank also said that heightened tensions in currency markets and related risks associated with global imbalances could result in a more protracted and difficult global recovery.
The loonie was also down against the euro, with EUR/CAD surging 0.86% to hit 1.4295.
Also Tuesday, official data showed that U.S. building permits fell unexpectedly in October while housing starts rose more-than-expected.