Investing.com - The U.S. dollar rose to session highs against the Canadian dollar on Wednesday after the Bank of Canada dropped language referring to the need for future rate increases from its monetary policy statement and revised down its growth forecast for this year.
USD/CAD hit 1.0379 during U.S. morning trade, the highest since October 16; the pair subsequently consolidated at 1.0368, up 0.78%.
The pair is likely to find support at 1.0281, the session low and resistance at 1.0406, the high of October 9.
The BoC revised down its estimate for growth this year to 1.6% from 1.8% in July as “uncertain global and domestic economic conditions” weighed on economic activity.
The central bank said it expects the economy to expand by 2.3% in 2014 and 2.6% in 2015.
The BoC left interest rates on hold at 1% in a widely expected decision.
The greenback was higher against the Canadian dollar earlier in the session 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 advancing 0.68% to 1.4275.
The BoC was to publish its quarterly monetary policy report later Wednesday and Governor Stephen Poltz was to hold a press conference.
USD/CAD hit 1.0379 during U.S. morning trade, the highest since October 16; the pair subsequently consolidated at 1.0368, up 0.78%.
The pair is likely to find support at 1.0281, the session low and resistance at 1.0406, the high of October 9.
The BoC revised down its estimate for growth this year to 1.6% from 1.8% in July as “uncertain global and domestic economic conditions” weighed on economic activity.
The central bank said it expects the economy to expand by 2.3% in 2014 and 2.6% in 2015.
The BoC left interest rates on hold at 1% in a widely expected decision.
The greenback was higher against the Canadian dollar earlier in the session 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 advancing 0.68% to 1.4275.
The BoC was to publish its quarterly monetary policy report later Wednesday and Governor Stephen Poltz was to hold a press conference.