Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Tuesday, ahead of the release of U.S. service sector data later in the trading session, although gains were limited by mounting expectations for the Federal Reserve to hold its stimulus program.
USD/CAD hit 1.0453 during early U.S. trade, the pair's highest since October 31; the pair subsequently consolidated at 1.0442, adding 0.18%.
The pair was likely to find support at 1.0398, Monday's low and resistance at 1.0490, the high of October 31.
The greenback came under pressure after comments by Federal Reserve officials on Monday indicated that the bank is likely to keep its stimulus program in place for some time to come.
Federal Reserve Bank of Boston President Eric Rosengren said bank should keep its asset purchase program in place until there is "compelling evidence of a sustainable recovery making satisfactory progress toward full employment."
The loonie was higher against the euro with EUR/CAD slipping 0.17%, to hit 1.4062.
The euro came under broad selling pressure after data last week showing that euro zone annual inflation fell to a four year low in October raised concerns that the ECB might cut rates in order to safeguard the economic recovery in the region.
While no policy change was expected from the ECB on Thursday many investors expected the bank to signal the possibility of further monetary policy easing at its meeting in December.
The European Commission cut its forecast for euro zone growth on Tuesday and said that unemployment in the region remains at unacceptably high levels.
The EC said it now expects economic growth of 1.1% in 2014 down from 1.2% and said the growth rate is expected to rise to 1.7% in 2015.
Meanwhile, data showed that euro zone producer price inflation was down 0.9% from a year earlier in September, compared to expectations for a 0.7% decline.
Later in the day, the Institute of Supply Management is to release a report on service sector activity.
USD/CAD hit 1.0453 during early U.S. trade, the pair's highest since October 31; the pair subsequently consolidated at 1.0442, adding 0.18%.
The pair was likely to find support at 1.0398, Monday's low and resistance at 1.0490, the high of October 31.
The greenback came under pressure after comments by Federal Reserve officials on Monday indicated that the bank is likely to keep its stimulus program in place for some time to come.
Federal Reserve Bank of Boston President Eric Rosengren said bank should keep its asset purchase program in place until there is "compelling evidence of a sustainable recovery making satisfactory progress toward full employment."
The loonie was higher against the euro with EUR/CAD slipping 0.17%, to hit 1.4062.
The euro came under broad selling pressure after data last week showing that euro zone annual inflation fell to a four year low in October raised concerns that the ECB might cut rates in order to safeguard the economic recovery in the region.
While no policy change was expected from the ECB on Thursday many investors expected the bank to signal the possibility of further monetary policy easing at its meeting in December.
The European Commission cut its forecast for euro zone growth on Tuesday and said that unemployment in the region remains at unacceptably high levels.
The EC said it now expects economic growth of 1.1% in 2014 down from 1.2% and said the growth rate is expected to rise to 1.7% in 2015.
Meanwhile, data showed that euro zone producer price inflation was down 0.9% from a year earlier in September, compared to expectations for a 0.7% decline.
Later in the day, the Institute of Supply Management is to release a report on service sector activity.