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Forex - USD/CAD edges higher in risk-off trade

Published 08/28/2013, 09:33 AM
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Investing.com - The U.S. dollar edged up against its Canadian counterpart on Wednesday, as concerns over a possible U.S. intervention in Syria continued to support demand for the safe haven greenback.

USD/CAD hit 1.0512 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0488, adding 0.13%.

The pair was likely to find support at 1.0396, the low of August 21 and resistance at 1.0540, Tuesday's high.

Risk sentiment weakened broadly amid growing indications that the U.S. and its allies were preparing to launch a military strikes against the Syria following the alleged use of chemical weapons.

British Prime Minister David Cameron drafted a United Nations resolution condemning the use of chemical weapons in Syria and "authorizing necessary measures to protect civilians" on Wednesday. The resolution was to be put forward at a meeting of the UN Security Council later in the day.

Separately, the greenback found support as concerns over the timing of a reduction in Federal Reserve stimulus eased after data on Tuesday showed that U.S. consumer confidence rose more than expected in August, hitting the highest level since January 2008.

The Conference Board said its index of consumer confidence rose to 81.5 in August from an upwardly revised 81.0 in July. Analysts had expected the index to tick down to 79.0.

The loonie was higher against the euro with EUR/CAD slipping 0.23%, to hit 1.3997.

Later in the day, the U.S. was to release data on pending home sales.


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