Investing.com - The U.S. dollar slipped lower against the Canadian dollar on Wednesday as hopes for a deal to raise the U.S. debt ceiling ahead of a deadline to avoid a default dampened demand for safe haven assets.
USD/CAD hit 1.0359 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0363, slipping 0.16%.
The pair was likely to find support at 1.0330, Tuesday’s low and resistance at 1.0390, Tuesday’s high.
Senate leaders were to resume negotiations on reopening the government and lifting the federal borrowing limit later Wednesday, after a last minute deal put forward by House Republicans collapsed.
Ratings agency Fitch placed its triple-A rating on the U.S. on “rating watch negative” on Tuesday, saying the political impasse has undermined confidence in U.S. economic policy.
The U.S. Treasury has said that if an agreement to raise the USD16.7 trillion debt ceiling is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Elsewhere, the loonie, as the Canadian is also known, was almost unchanged against the euro, with EUR/CAD inching up 0.01% to 1.4039.
In the euro zone, data released on Wednesday showed that the annual rate of consumer inflation in the euro zone was unchanged from a preliminary estimate of 1.1% in September.
A separate report showed that the euro zone’s trade surplus widened to EUR12.3 billion in August from EUR11 billion in April, broadly in line with forecasts.
USD/CAD hit 1.0359 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0363, slipping 0.16%.
The pair was likely to find support at 1.0330, Tuesday’s low and resistance at 1.0390, Tuesday’s high.
Senate leaders were to resume negotiations on reopening the government and lifting the federal borrowing limit later Wednesday, after a last minute deal put forward by House Republicans collapsed.
Ratings agency Fitch placed its triple-A rating on the U.S. on “rating watch negative” on Tuesday, saying the political impasse has undermined confidence in U.S. economic policy.
The U.S. Treasury has said that if an agreement to raise the USD16.7 trillion debt ceiling is not struck ahead of Thursday’s deadline, the U.S. will face an unprecedented sovereign debt default.
Elsewhere, the loonie, as the Canadian is also known, was almost unchanged against the euro, with EUR/CAD inching up 0.01% to 1.4039.
In the euro zone, data released on Wednesday showed that the annual rate of consumer inflation in the euro zone was unchanged from a preliminary estimate of 1.1% in September.
A separate report showed that the euro zone’s trade surplus widened to EUR12.3 billion in August from EUR11 billion in April, broadly in line with forecasts.