Investing.com - The U.S. dollar edged higher against the Canadian dollar in subdued trade on Monday as market sentiment remained subdued ahead of the outcome of Wednesday’s Federal Reserve policy meeting.
USD/CAD hit session highs of 1.0595 and was last up 0.08% to 1.0589 from session lows of 1.0574.
The pair was likely to find support at 1.0559, the low of December 12 and resistance at 1.0650.
Investors remained cautious ahead of the outcome of the Fed’s upcoming policy meeting on Wednesday, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
Markets were turning their attention to U.S. inflation data due out on Tuesday amid concerns that the subdued inflation outlook could prompt the Fed to keep its stimulus program in place for longer.
In the U.S., data on Monday showed that industrial output rose 1.1% in November, beating forecasts for a 0.5% gain.
Meanwhile, another report showed that foreign investors’ acquisitions of Canadian securities increased less-than-expected in October.
Statistics Canada said that foreign investment increased by CAD4.41 billion, compared to expectations for purchases of CAD9.24 billion.
The Canadian dollar continued to receive lingering support after Bank of Canada Governor Stephen Poloz said last week that rates were likely to remain on hold for some time, dampening speculation that the sluggish inflation outlook would prompt rate cuts.
Elsewhere, the loonie, as the Canadian dollar is also known, was slightly lower against the euro, with EUR/CAD rising 0.15% to 1.4564. The single currency was boosted after data released on Monday showed that private sector activity in the euro zone rose in December.
USD/CAD hit session highs of 1.0595 and was last up 0.08% to 1.0589 from session lows of 1.0574.
The pair was likely to find support at 1.0559, the low of December 12 and resistance at 1.0650.
Investors remained cautious ahead of the outcome of the Fed’s upcoming policy meeting on Wednesday, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
Markets were turning their attention to U.S. inflation data due out on Tuesday amid concerns that the subdued inflation outlook could prompt the Fed to keep its stimulus program in place for longer.
In the U.S., data on Monday showed that industrial output rose 1.1% in November, beating forecasts for a 0.5% gain.
Meanwhile, another report showed that foreign investors’ acquisitions of Canadian securities increased less-than-expected in October.
Statistics Canada said that foreign investment increased by CAD4.41 billion, compared to expectations for purchases of CAD9.24 billion.
The Canadian dollar continued to receive lingering support after Bank of Canada Governor Stephen Poloz said last week that rates were likely to remain on hold for some time, dampening speculation that the sluggish inflation outlook would prompt rate cuts.
Elsewhere, the loonie, as the Canadian dollar is also known, was slightly lower against the euro, with EUR/CAD rising 0.15% to 1.4564. The single currency was boosted after data released on Monday showed that private sector activity in the euro zone rose in December.