Investing.com – The Canadian dollar soared to a 6-week high against its U.S. counterpart on Wednesday, after the Federal Reserve on Tuesday indicated concern over sluggish U.S. growth and low inflation levels.
USD/CAD hit 1.0206 during European morning trade, the pair's lowest since August 6, the pair subsequently consolidated at 1.0216, shedding 0.48%.
The pair was likely to find support at 1.0146, the low of August 8 and resistance at 1.0329, Tuesday's high.
Following Tuesday's policy meeting, Fed officials said the U.S. economic recovery would remain modest in the near term and indicated that that they were ready to implement quantitative easing measures to stimulate growth.
In a statement officials said that, "The committee ... is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate."
Quantitative easing increases the supply of money, causing inflation to rise. It is used to stimulate an economy in a situation where interest rates are already low.
Meanwhile, the loonie was down against the euro, with EUR/CAD gaining 0.18% to hit 1.3643.
Later in the day, Canada was to release official data on retail sales.
USD/CAD hit 1.0206 during European morning trade, the pair's lowest since August 6, the pair subsequently consolidated at 1.0216, shedding 0.48%.
The pair was likely to find support at 1.0146, the low of August 8 and resistance at 1.0329, Tuesday's high.
Following Tuesday's policy meeting, Fed officials said the U.S. economic recovery would remain modest in the near term and indicated that that they were ready to implement quantitative easing measures to stimulate growth.
In a statement officials said that, "The committee ... is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate."
Quantitative easing increases the supply of money, causing inflation to rise. It is used to stimulate an economy in a situation where interest rates are already low.
Meanwhile, the loonie was down against the euro, with EUR/CAD gaining 0.18% to hit 1.3643.
Later in the day, Canada was to release official data on retail sales.