Investing.com - The U.S. dollar was steady close to two month highs against the Canadian dollar on Tuesday as last week’s stronger than expected U.S. jobs report continued to support the view that the Federal Reserve will soon start to taper stimulus.
During U.S. morning trade, USD/CAD edged up 0.02% to 1.0476, after rising to 1.0509, the highest level since September 6 earlier.
The pair was likely to find support at 1.0444, the low of November 8 and resistance at 1.0507, the session high.
Demand for the dollar continued to be underpinned after official data last week showed that the U.S. economy added 204,000 jobs in October, far more than the 125,000 forecast by economists.
The upbeat data spurred speculation that the Fed may start winding down its USD85 billion-a-month asset purchase program as soon as its next monthly meeting in December.
Elsewhere, the loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.25% to 1.4077.
The euro’s gains looked likely to remain limited after weak German inflation data raised concerns over weakening demand in the euro zone.
Data released on Tuesday showed that the annual rate of inflation in Germany, the euro zone’s largest economy, slowed to the lowest level in more than three years in October.
The data added to concerns over growing deflationary pressures in the euro area, after the annual rate of inflation across the euro zone slowed to a four year low last month. The downward trend in euro area inflation prompted the European Central Bank to cut rates to a record low 0.25% last week.
During U.S. morning trade, USD/CAD edged up 0.02% to 1.0476, after rising to 1.0509, the highest level since September 6 earlier.
The pair was likely to find support at 1.0444, the low of November 8 and resistance at 1.0507, the session high.
Demand for the dollar continued to be underpinned after official data last week showed that the U.S. economy added 204,000 jobs in October, far more than the 125,000 forecast by economists.
The upbeat data spurred speculation that the Fed may start winding down its USD85 billion-a-month asset purchase program as soon as its next monthly meeting in December.
Elsewhere, the loonie, as the Canadian dollar is also known, was lower against the euro, with EUR/CAD rising 0.25% to 1.4077.
The euro’s gains looked likely to remain limited after weak German inflation data raised concerns over weakening demand in the euro zone.
Data released on Tuesday showed that the annual rate of inflation in Germany, the euro zone’s largest economy, slowed to the lowest level in more than three years in October.
The data added to concerns over growing deflationary pressures in the euro area, after the annual rate of inflation across the euro zone slowed to a four year low last month. The downward trend in euro area inflation prompted the European Central Bank to cut rates to a record low 0.25% last week.