Investing.com - The U.S. dollar edged higher against its Canadian counterpart on Wednesday, as market participants eyed the Federal Reserve's upcoming policy statement, while the release of upbeat Canadian wholesale sales data lent some support to the local currency.
USD/CAD hit 1.2333 during early U.S. trade, the session high; the pair subsequently consolidated at 1.2316, adding 0.18%.
The pair was likely to find support at 1.2249, the low of June 11 and resistance at 1.2360, the high of June 15.
Investors eyed the Fed’s rate statement later Wednesday for any clear signal about a possible timeline for hiking interest rates, which have remained close to zero since late 2008.
On Tuesday, data showing that the number of U.S. building permits issued rose to an almost eight-year high in May added to the view that the economy is regaining momentum after a weak first quarter.
Housing starts fell last month following strong gains in April, but remained at levels consistent with a strengthening housing market.
In Canada, data on Wednesday showed that wholesale sales rose 1.9% in April, beating expectations for a 0.3% uptick. The change in wholesale sales for March was revised to a 1.0% increase from a previously estimated 0.8% rise.
The loonie was lower against the euro, with EUR/CAD gaining 0.44% to 1.3880.
In the euro zone, data earlier showed that consumer price inflation increased by 0.3% last month, in line with expectations and unchanged from a preliminary estimate. Euro zone inflation was flat in April.
Core CPI, which excludes food, energy, alcohol, and tobacco costs rose by 0.9% in May, unchanged from an initial estimate and up from 0.9% in April.
Meanwhile, concerns over the approaching deadline for Greece’s repayments to the International Monetary Fund persisted.
Europe wants Greece to make spending cuts worth €2 billion in order to secure a deal that will unlock additional funds before its bailout expires at the end of June and it must repay €1.6 billion to the IMF.
A default by Greece could lead to the country’s exit from the euro area.