Investing.com - The U.S. dollar rose to a session high against the Canadian dollar on Wednesday, after the Bank of Canada left its benchmark interest rate unchanged and indicated that it may hike borrowing costs in the coming months, despite moderating global growth.
USD/CAD hit 0.9898 during early U.S. trade, the pair’s highest since August 31; the pair subsequently consolidated at 0.9896, gaining 0.39%.
The pair was likely to find support at 0.9841, Tuesday’s low and resistance at 0.9929, the high of August 31.
The BoC kept its overnight rate unchanged at 1.00%, in line with market expectations.
The central bank said domestic economic growth was still roughly in line with potential and added that growth was expected to pick up through 2013.
The BoC repeated the language of its two previous rate statements, saying “some modest withdrawal of the present considerable monetary policy stimulus may become appropriate.”
The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rallying 0.63% to 1.2466.
The euro strengthened broadly following media reports concerning some details of the European Central Bank’s bond purchasing plan.
Bloomberg reported that the ECB is planning "unlimited, sterilized" bond buying, without setting bond yield targets. The plan is reported to be focused on government bonds with maturities of up to three years.
The ECB declined to comment on the report.
USD/CAD hit 0.9898 during early U.S. trade, the pair’s highest since August 31; the pair subsequently consolidated at 0.9896, gaining 0.39%.
The pair was likely to find support at 0.9841, Tuesday’s low and resistance at 0.9929, the high of August 31.
The BoC kept its overnight rate unchanged at 1.00%, in line with market expectations.
The central bank said domestic economic growth was still roughly in line with potential and added that growth was expected to pick up through 2013.
The BoC repeated the language of its two previous rate statements, saying “some modest withdrawal of the present considerable monetary policy stimulus may become appropriate.”
The loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rallying 0.63% to 1.2466.
The euro strengthened broadly following media reports concerning some details of the European Central Bank’s bond purchasing plan.
Bloomberg reported that the ECB is planning "unlimited, sterilized" bond buying, without setting bond yield targets. The plan is reported to be focused on government bonds with maturities of up to three years.
The ECB declined to comment on the report.