Investing.com - The U.S. dollar slipped against the Canadian dollar on Wednesday, re-approaching three-month lows as disappointing U.S. inflation and manufacturing data kept alive hopes for further easing from the Federal Reserve.
USD/CAD hit 0.9908 during early U.S. trade, the session low; the pair subsequently consolidated at 0.9911, shedding 0.11%.
The pair was likely to find support at 0.9860, the low of May 4 and resistance at 0.9934, the session high.
Official data showed that consumer price inflation in the U.S. was flat in July for the second successive month, compared to expectations for a 0.2% increase.
Core consumer prices, which exclude food and energy prices, rose 0.1%, less than the expected 0.2% increase, following a 0.2% rise in June.
Another report showed that the New York Federal Reserve’s index of manufacturing conditions deteriorated significantly more-than-expected this month, contracting for the first time since October 2011.
The Federal Reserve Bank of New York said that its general business conditions index came in at minus 5.8 in August, down sharply from a reading of 7.4 in July. Analysts had expected the index fall to 6.5 in August.
Trade remained thin, with many market participants away for summer holidays.
The Canadian dollar looked likely to remain supported well above parity after Bank of Canada Governor Mark Carney indicated last week that the central bank may raise interest rates.
The loonie, as the Canadian dollar is also known, was hovering close to a record high against the euro, with EUR/CAD down 0.43% to 1.2174.
The euro remained under pressure amid concerns over the economic outlook for the euro zone after data on Tuesday showed that the bloc’s economy contracted 0.2% in the second quarter.
Meanwhile, hopes that the European Central Bank will soon move to stem the debt crisis in the euro zone faded, as investors waited for more details of the bank’s proposed bond buying program to emerge.
USD/CAD hit 0.9908 during early U.S. trade, the session low; the pair subsequently consolidated at 0.9911, shedding 0.11%.
The pair was likely to find support at 0.9860, the low of May 4 and resistance at 0.9934, the session high.
Official data showed that consumer price inflation in the U.S. was flat in July for the second successive month, compared to expectations for a 0.2% increase.
Core consumer prices, which exclude food and energy prices, rose 0.1%, less than the expected 0.2% increase, following a 0.2% rise in June.
Another report showed that the New York Federal Reserve’s index of manufacturing conditions deteriorated significantly more-than-expected this month, contracting for the first time since October 2011.
The Federal Reserve Bank of New York said that its general business conditions index came in at minus 5.8 in August, down sharply from a reading of 7.4 in July. Analysts had expected the index fall to 6.5 in August.
Trade remained thin, with many market participants away for summer holidays.
The Canadian dollar looked likely to remain supported well above parity after Bank of Canada Governor Mark Carney indicated last week that the central bank may raise interest rates.
The loonie, as the Canadian dollar is also known, was hovering close to a record high against the euro, with EUR/CAD down 0.43% to 1.2174.
The euro remained under pressure amid concerns over the economic outlook for the euro zone after data on Tuesday showed that the bloc’s economy contracted 0.2% in the second quarter.
Meanwhile, hopes that the European Central Bank will soon move to stem the debt crisis in the euro zone faded, as investors waited for more details of the bank’s proposed bond buying program to emerge.