Investing.com - The U.S. dollar pushed higher against the Canadian dollar on Wednesday, but gains were limited as concerns over the impact of a U.S. government shutdown and weak U.S. private sector jobs data weighed.
USD/CAD hit 1.0356 during early U.S. trade, the highest since September 11; the pair subsequently consolidated at 1.0339, gaining 0.14%.
The pair was likely to find support at 1.0286, Tuesday’s low and resistance at 1.0380, the high of September 10.
The greenback remained under pressure amid fears that the U.S. government shutdown would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Last month the U.S. central bank took markets by surprise with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Data released on Wednesday showed that the U.S. private sector added fewer-than-expected jobs in September, clouding the outlook for the economic recovery.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 166,000 in September, below expectations for an increase of 180,000.
The previous month’s figure was revised down to a gain of 159,000 from a previously reported increase of 176,000.
The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD advancing 0.66% to 1.4058.
The euro found support as Italian Prime Minister Enrico Letta survived a vote of confidence in parliament on Wednesday, after Silvio Berlusconi dropped his opposition to the coalition, in a surprise U-turn after announcing Saturday that he was pulling his ministers out of the government.
The single currency was also boosted after the European Central Bank kept rates on hold at 0.5%.
ECB President Mario Draghi said risks to the euro zone economy remain to the downside before reiterating that bank rates would remain at current or lower levels for an “extended period of time”.
The comments came at the bank’s post-policy meeting press conference.
Draghi reiterated that the ECB remains ready to extend a third round of ultra-cheap loans to banks to safeguard the recovery.
USD/CAD hit 1.0356 during early U.S. trade, the highest since September 11; the pair subsequently consolidated at 1.0339, gaining 0.14%.
The pair was likely to find support at 1.0286, Tuesday’s low and resistance at 1.0380, the high of September 10.
The greenback remained under pressure amid fears that the U.S. government shutdown would curb the economic recovery and prompt the Federal Reserve to maintain its stimulus program for longer.
Last month the U.S. central bank took markets by surprise with a decision to keep its stimulus program on track, saying it wanted to see more evidence of a sustained economic recovery before tapering.
Markets were also mulling over how the political deadlock in Washington will impact on negotiations to raise the U.S. debt ceiling, which the U.S. Treasury Department has estimated will be reached by October 17.
Data released on Wednesday showed that the U.S. private sector added fewer-than-expected jobs in September, clouding the outlook for the economic recovery.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 166,000 in September, below expectations for an increase of 180,000.
The previous month’s figure was revised down to a gain of 159,000 from a previously reported increase of 176,000.
The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD advancing 0.66% to 1.4058.
The euro found support as Italian Prime Minister Enrico Letta survived a vote of confidence in parliament on Wednesday, after Silvio Berlusconi dropped his opposition to the coalition, in a surprise U-turn after announcing Saturday that he was pulling his ministers out of the government.
The single currency was also boosted after the European Central Bank kept rates on hold at 0.5%.
ECB President Mario Draghi said risks to the euro zone economy remain to the downside before reiterating that bank rates would remain at current or lower levels for an “extended period of time”.
The comments came at the bank’s post-policy meeting press conference.
Draghi reiterated that the ECB remains ready to extend a third round of ultra-cheap loans to banks to safeguard the recovery.