Investing.com – The U.S. dollar jumped to a seven-day high against its Canadian counterpart on Wednesday, briefly climbing above parity as markets shrugged off higher-than-expected Canadian inflation data and awaited the outcome of the Federal Reserve’s policy meeting later in the day.
USD/CAD hit 1.0000 during U.S. morning trade, the highest since September 12; the pair subsequently consolidated at 0.9981, climbing 0.55%.
The pair was likely to find support at 0.9805, the low of September 19 and short-term resistance at 1.0026, the high of September 12.
The Fed’s Open Market Committee was to conclude its two-day policy meeting later in the day, amid speculation that the central bank could introduce fresh stimulus measures to boost U.S. economic growth.
Many market participants expect the Fed to opt for a move known as ‘Operation Twist’, a combination of buying and selling of shorter and longer term Treasury bonds in order the bend the yield curve.
Meanwhile, Statistics Canada said earlier that core consumer price inflation rose by 0.4% in August, above expectations for a 0.2% gain.
Consumer price inflation including more volatile food and energy costs rose 0.3% in August, outstripping expectations for a 0.1% gain, boosted by higher prices for gasoline and food products.
Year-on-year, CPI rose at an annualized rate of 3.1% in August, higher than the expected 2.9% increase.
The loonie remained came under further pressure after crude oil for delivery in November shed 0.5% to trade at USD86.50 a barrel on the New York Mercantile Exchange.
Raw materials, including oil account for about half of Canada’s export revenue.
Elsewhere, the Canadian dollar was also lower against the euro, with EUR/CAD gaining 0.42% to hit 1.3658.
Later in the day, the Fed was to make a highly-anticipated announcement on monetary policy, while the U.S. was also to publish industry data on existing home sales.
USD/CAD hit 1.0000 during U.S. morning trade, the highest since September 12; the pair subsequently consolidated at 0.9981, climbing 0.55%.
The pair was likely to find support at 0.9805, the low of September 19 and short-term resistance at 1.0026, the high of September 12.
The Fed’s Open Market Committee was to conclude its two-day policy meeting later in the day, amid speculation that the central bank could introduce fresh stimulus measures to boost U.S. economic growth.
Many market participants expect the Fed to opt for a move known as ‘Operation Twist’, a combination of buying and selling of shorter and longer term Treasury bonds in order the bend the yield curve.
Meanwhile, Statistics Canada said earlier that core consumer price inflation rose by 0.4% in August, above expectations for a 0.2% gain.
Consumer price inflation including more volatile food and energy costs rose 0.3% in August, outstripping expectations for a 0.1% gain, boosted by higher prices for gasoline and food products.
Year-on-year, CPI rose at an annualized rate of 3.1% in August, higher than the expected 2.9% increase.
The loonie remained came under further pressure after crude oil for delivery in November shed 0.5% to trade at USD86.50 a barrel on the New York Mercantile Exchange.
Raw materials, including oil account for about half of Canada’s export revenue.
Elsewhere, the Canadian dollar was also lower against the euro, with EUR/CAD gaining 0.42% to hit 1.3658.
Later in the day, the Fed was to make a highly-anticipated announcement on monetary policy, while the U.S. was also to publish industry data on existing home sales.