Investing.com - The Canadian dollar firmed up against the U.S. dollar on Monday, after falling sharply in the previous three sessions after the Bank of Canada indicated that rates may remain on hold for longer than had been thought.
USD/CAD hit 1.0452 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.0447, dipping 0.04%.
The pair was likely to find support at 1.0409, Friday’s low and resistance at 1.0459, Friday’s high and a one-and-a-half month high.
The Canadian dollar dropped after the BoC dropped language referring to the need for future rate hikes from its monetary policy statement on Wednesday. The bank also cut its outlook for economic growth, citing “uncertain global and domestic economic conditions”.
Investors remained cautious ahead of the Federal Reserve’s upcoming policy meeting later in the week after recent disappointing economic data cemented expectations that the central bank will maintain the current pace of its asset purchase program into the first quarter of next year.
In the U.S., data released on Monday showed that U.S. industrial production rose by a 0.6% last month, above expectations for a 0.4% rise and the fastest increase in seven months.
A separate report showed that U.S. pending home sales fell 5.6% last month, down for the fourth consecutive month.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.21% to 1.4396.
USD/CAD hit 1.0452 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.0447, dipping 0.04%.
The pair was likely to find support at 1.0409, Friday’s low and resistance at 1.0459, Friday’s high and a one-and-a-half month high.
The Canadian dollar dropped after the BoC dropped language referring to the need for future rate hikes from its monetary policy statement on Wednesday. The bank also cut its outlook for economic growth, citing “uncertain global and domestic economic conditions”.
Investors remained cautious ahead of the Federal Reserve’s upcoming policy meeting later in the week after recent disappointing economic data cemented expectations that the central bank will maintain the current pace of its asset purchase program into the first quarter of next year.
In the U.S., data released on Monday showed that U.S. industrial production rose by a 0.6% last month, above expectations for a 0.4% rise and the fastest increase in seven months.
A separate report showed that U.S. pending home sales fell 5.6% last month, down for the fourth consecutive month.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD down 0.21% to 1.4396.