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Forex - USD/CAD tumbles to 6-month low after FOMC minutes

Published 10/13/2010, 05:43 AM
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Investing.com – The U.S. dollar tumbled to a 6-month low against its Canadian counterpart on Wednesday, after the minutes of the last meeting of Federal Reserve policy makers indicated that fresh stimulus measures may be required.

USD/CAD hit 1.0060 during European morning trade, the pair’s lowest since April 30; the pair subsequently consolidated at 1.0065, shedding 0.36%.

The pair was likely to find short-term support at 1.0015, the low of April 30 and resistance at 1.0182, Tuesday’s high.

On Tuesday, the minutes revealed of the September 21 meeting of Federal Open Market Committee showed that "many participants" believed "it would be appropriate to provide additional monetary policy accommodation" if unemployment remained too high or inflation too low.

"Several members noted that unless the pace of economic recovery strengthened or underlying inflation moved back toward a level consistent with the [Fed's] mandate, they would consider it appropriate to take action soon," the minutes said.

Meanwhile, the loonie was down against the euro, with EUR/CAD gaining 0.14% to hit 1.4086.

Later in the day, Canada was to publish official data on house price changes.

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