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Forex - USD/CAD almost unchanged after Canadian inflation data

Published 10/18/2013, 09:30 AM
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EUR/CAD
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Investing.com - The U.S. dollar was almost unchanged against its U.S. counterpart in light trade on Friday, after the release of higher than expected Canadian inflation data, while speculation the Federal Reserve may not soon scale back its stimulus program weighed on the greenback.

USD/CAD hit 1.0284 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0288, inching down 0.05%.

The pair was likely to find support at 1.0202, the low of September 18 and resistance at 1.0340, the high of October 4.

In Canada, official data showed that core consumer price inflation remained unchanged at 1.3% in September, confounding expectations for a downtick to 1%.

Consumer price inflation, including the eight most volatile items, rose to 0.2% last month, from a flat reading in August, compared to expectations for a rise to 0.1%.

Meanwhile, the greenback remained under pressure amid fears over the impact of the government shutdown on the already fragile economic recovery, which could prompt the Federal Reserve to delay plans for scaling back its stimulus program until at least the start of next year.

The possibility of another debt crisis also loomed, as the temporary debt ceiling agreement reached early Thursday does not resolve the underlying budgetary issues dividing Republicans and Democrats.

The deal will fund the government until January 15 and raise the government borrowing limit until February 7. Both sides also agreed to talks over broad budget issues in an attempt to reach a longer-term deal by December 13.

The loonie was steady against the euro with EUR/CAD dipping 0.06%, to hit 1.4069.


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