Investing.com - The U.S. dollar dropped to one-month lows against its Canadian counterpart on Wednesday, as demand for the greenback weakened broadly before the highly-anticipated minutes of the Federal Reserve's latest policy meeting.
USD/CAD hit 1.2388 during early U.S. trade, the pair's lowest since February 25; the pair subsequently consolidated at 1.2421, declining 0.68%.
The pair was likely to find support at 1.2309, the low of January 22 and resistance at 1.2524, Tuesday's high.
Market participants were eyeing the Fed's upcoming meeting minutes for indications on the central bank's next policy moves after Friday's downbeat jobs data fuelled uncertainty over the timing of a rate hike.
The Labor Department reported Friday that the U.S. economy added 126,000 new jobs in March, less than half of February’s gain and the smallest increase since December 2013.
The loonie was higher against the euro, with EUR/CAD shedding 0.28% to 1.3486.
Also Wednesday, data showed that retail sales in the euro zone fell 0.2% in February, in line with market expectations. On a year-over-year basis, retail sales rose 3.0% also in line with forecasts.
The report said gasoline sales fell for the first time since September, indicating that the boost to consumer spending from lower oil prices may be waning.
A separate report showed that German factory orders fell 0.9% in February, disappointing expectations for an increase of 1.5%. January's figure was revised to a 2.6% drop from a previously estimated 3.9% slide.