Investing.com - The U.S. dollar was higher against the Canadian dollar on Wednesday ahead of the Bank of Canada’s rate statement later in the session, as markets try to gauge when the central bank may eventually raise rates.
USD/CAD hit 1.0338 during early U.S. trade, the highest since October 16; the pair subsequently consolidated at 1.0329, gaining 0.40%.
The pair was likely to find support at 1.0270, Tuesday’s low and resistance at 1.0355, the high of October 2.
The greenback recovered against the Canadian dollar on Wednesday as concerns that China’s central bank would tighten monetary policy to help control inflation boosted safe haven demand.
Market sentiment was also hit after the European Central Bank announced details of new year-long bank stress tests on Wednesday. The news sparked concerns over a revival of the crisis in the euro zone.
The outlook for the greenback continued to be clouded by expectations that the Federal Reserve will maintain the current pace of its stimulus program into next year, after Tuesday’s disappointing U.S. nonfarm payrolls report.
The U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000, indicating that jobs growth had slowed even before the start of the recent 16-day U.S. government shutdown.
Elsewhere, the loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.34% to 1.4227.
The BoC was widely expected to keep rates on hold at 1% later Wednesday.
USD/CAD hit 1.0338 during early U.S. trade, the highest since October 16; the pair subsequently consolidated at 1.0329, gaining 0.40%.
The pair was likely to find support at 1.0270, Tuesday’s low and resistance at 1.0355, the high of October 2.
The greenback recovered against the Canadian dollar on Wednesday as concerns that China’s central bank would tighten monetary policy to help control inflation boosted safe haven demand.
Market sentiment was also hit after the European Central Bank announced details of new year-long bank stress tests on Wednesday. The news sparked concerns over a revival of the crisis in the euro zone.
The outlook for the greenback continued to be clouded by expectations that the Federal Reserve will maintain the current pace of its stimulus program into next year, after Tuesday’s disappointing U.S. nonfarm payrolls report.
The U.S. economy added 148,000 jobs in September, well below expectations for an increase of 180,000, indicating that jobs growth had slowed even before the start of the recent 16-day U.S. government shutdown.
Elsewhere, the loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.34% to 1.4227.
The BoC was widely expected to keep rates on hold at 1% later Wednesday.