Investing.com - The U.S. dollar was higher against its Canadian counterpart on Wednesday, as concerns over the outlook for global economic growth boosted safe haven demand, although upbeat Canadian housing starts data lent support to the loonie.
USD/CAD hit 1.1188 during European afternoon trade, the session high; the pair subsequently consolidated at 1.1174, adding 0.11%.
The pair was likely to find support at 1.1107, the low of October 6 and resistance at 1.1266, the high of October 6.
Demand for the safe-haven greenback strengthened after the International Monetary Fund on Thursday downgraded its global growth forecast for both this year and next, due to stagnation in Europe and a weaker-than-forecast recovery in Japan.
The agency now sees 2014 global growth of 3.3% and 2015 growth of 3.8%, a decline of 0.1% for 2014 and 0.2% for 2015 from forecasts made in July.
In Canada, data showed that housing starts rose by 197,300 in September, beating expectations for an increase of 196,000. August's figure was revised up to a 196,300 gain from a previously estimated 192,400.
Investors were turning their attention to the minutes of the Federal Reserve’s September meeting, due out later in the day, for fresh indications on the future possible direction of U.S. monetary policy.
The loonie was steady against the euro, with EUR/CAD dipping 0.05% to 1.4135.
Sentiment on the euro remained vulnerable after a report on Tuesday showing a steep decline in German factory orders in August fuelled fears that the euro zone’s largest economy is falling into a recession.