Investing.com - The Canadian dollar rose against its U.S. counterpart after the European Central Bank opened a long-term refinancing operation to spur growth.
In Asian trading on Wednesday, USD/CAD hit 0.9886, down 0.14%, gaining from a session low of 0.9880 and off from a high of 0.9902.
The pair was likely to test technical support at 0.9874 and resistance at 0.9904.
The ECB kicked off a long-term refinancing operation program, which makes three-year loans available to banks at attractive interest rates and collateral requirements.
The move follows a similar round in late 2011.
The ECB provided EUR529 billion in three-year loans to European banks after receiving bids from 800 institutions, much more than the central bank's first long-term refinancing operation late last year.
The move injects hefty doses of liquidity into European banks, freeing them to invest in assets elsewhere and a lot of that liquidity crossed the Atlantic and ended up in Canada.
The Canadian dollar, meanwhile, was steady against the euro and up against the yen, with EUR/CAD losing 0.01% and trading at 1.3191 and CAD/JPY up 0.11% at 82.05.
Later Thursday, the U.S. will release data on initial jobless claims as well as personal consumption expenditures and personal spending.
Meanwhile, the Institute for Supply Management is to unveil its latest index on manufacturing activity.
In addition, Fed Chairman Bernanke is due to testify for a second day before the Senate Banking Committee.
Canada will release current account data, which will shed light on the country's balance of payments, as well as Industrial Product Price Index, which measures the change in the price of domestically produced goods sold by manufacturers.
In Asian trading on Wednesday, USD/CAD hit 0.9886, down 0.14%, gaining from a session low of 0.9880 and off from a high of 0.9902.
The pair was likely to test technical support at 0.9874 and resistance at 0.9904.
The ECB kicked off a long-term refinancing operation program, which makes three-year loans available to banks at attractive interest rates and collateral requirements.
The move follows a similar round in late 2011.
The ECB provided EUR529 billion in three-year loans to European banks after receiving bids from 800 institutions, much more than the central bank's first long-term refinancing operation late last year.
The move injects hefty doses of liquidity into European banks, freeing them to invest in assets elsewhere and a lot of that liquidity crossed the Atlantic and ended up in Canada.
The Canadian dollar, meanwhile, was steady against the euro and up against the yen, with EUR/CAD losing 0.01% and trading at 1.3191 and CAD/JPY up 0.11% at 82.05.
Later Thursday, the U.S. will release data on initial jobless claims as well as personal consumption expenditures and personal spending.
Meanwhile, the Institute for Supply Management is to unveil its latest index on manufacturing activity.
In addition, Fed Chairman Bernanke is due to testify for a second day before the Senate Banking Committee.
Canada will release current account data, which will shed light on the country's balance of payments, as well as Industrial Product Price Index, which measures the change in the price of domestically produced goods sold by manufacturers.