Investing.com – The U.S. dollar rose to a three-day high against its Canadian counterpart on Tuesday, following the release of mixed U.S. housing data, while markets awaited the start of a two-day Federal Reserve monetary policy meeting later in the day.
USD/CAD hit 0.9942 during U.S. morning trade, the highest since September 15; the pair subsequently consolidated at 0.9929, gaining 0.22%.
The pair was likely to find support at 0.9805, Monday’s low and resistance at 1.0026, the high of September 12.
The U.S. Census Bureau said earlier that the number of building permits issued in August rose 3.2% to hit a seven-month high of 0.62 million, confounding expectations for a decline of 1.8% to 0.59 million units.
However, U.S. housing starts tumbled 5.0% to hit a three-month low of 0.57 million units, worse than expectations for a 2.3% decline to 0.59 million.
Meanwhile, Statistics Canada said earlier that wholesale sales rose by 0.8% in July, doubling expectations for a 0.4% gain.
Separate data showed that an index of leading indicators designed to predict the direction of the economy was flat in August, disappointing expectations for a 0.2% gain.
Meanwhile, markets were beginning to focus on the upcoming two-day policy setting meeting of the Federal Reserve, amid speculation that the central bank could implement fresh stimulus to bolster the U.S. economy.
Elsewhere, the Canadian dollar was also lower against the euro, with EUR/CAD edging 0.11% higher to hit 1.3575.
The single currency largely shrugged off a downgrade to Italy’s credit rating, instead focusing on hopes that Greece was close to receiving the next tranche of bailout funds following a report in the Wall Street Journal, citing a Greek finance ministry official.
Well-received Greek and Spanish bond auctions and news that Greece paid EUR769 million in bond coupons due Tuesday also helped lift the euro. .
Later in the day, Bank of Canada Governor Mark Carney was to deliver a speech in Canada discussing recent global economic developments.
USD/CAD hit 0.9942 during U.S. morning trade, the highest since September 15; the pair subsequently consolidated at 0.9929, gaining 0.22%.
The pair was likely to find support at 0.9805, Monday’s low and resistance at 1.0026, the high of September 12.
The U.S. Census Bureau said earlier that the number of building permits issued in August rose 3.2% to hit a seven-month high of 0.62 million, confounding expectations for a decline of 1.8% to 0.59 million units.
However, U.S. housing starts tumbled 5.0% to hit a three-month low of 0.57 million units, worse than expectations for a 2.3% decline to 0.59 million.
Meanwhile, Statistics Canada said earlier that wholesale sales rose by 0.8% in July, doubling expectations for a 0.4% gain.
Separate data showed that an index of leading indicators designed to predict the direction of the economy was flat in August, disappointing expectations for a 0.2% gain.
Meanwhile, markets were beginning to focus on the upcoming two-day policy setting meeting of the Federal Reserve, amid speculation that the central bank could implement fresh stimulus to bolster the U.S. economy.
Elsewhere, the Canadian dollar was also lower against the euro, with EUR/CAD edging 0.11% higher to hit 1.3575.
The single currency largely shrugged off a downgrade to Italy’s credit rating, instead focusing on hopes that Greece was close to receiving the next tranche of bailout funds following a report in the Wall Street Journal, citing a Greek finance ministry official.
Well-received Greek and Spanish bond auctions and news that Greece paid EUR769 million in bond coupons due Tuesday also helped lift the euro. .
Later in the day, Bank of Canada Governor Mark Carney was to deliver a speech in Canada discussing recent global economic developments.