Investing.com – The U.S. dollar erased gains against its Canadian counterpart on Tuesday, retreating from a 2-day high, as sentiment on the U.S. dollar soured ahead of the release of minutes from the last meeting of Federal Reserve policy makers.
USD/CAD retreated from 1.0182, the pair’s highest since October 8, to hit 1.0127 during European afternoon trade, shedding 0.11%.
The pair was likely to find support at 1.0076, the low of October 7 and resistance at 1.0234, the high of October 8.
Later in the day, Canadian Finance Minister Jim Flaherty was to deliver a budget update. Last month, Minister Flaherty said Canada’s deficit in the fiscal year that ended March 31 may exceed the prior estimate of a record CAD 53.8 billion.
However faster growth this year may boost tax revenue and help Flaherty maintain efforts to shift his focus to eliminating the deficit, even as pressure for additional stimulus grows.
Meanwhile, the loonie was also up against the euro, with EUR/CAD shedding 0.30% to hit 1.4027.
Later in the day, the Fed was to publish the minutes of its September 21 meeting of the Federal Open Market Committee.
USD/CAD retreated from 1.0182, the pair’s highest since October 8, to hit 1.0127 during European afternoon trade, shedding 0.11%.
The pair was likely to find support at 1.0076, the low of October 7 and resistance at 1.0234, the high of October 8.
Later in the day, Canadian Finance Minister Jim Flaherty was to deliver a budget update. Last month, Minister Flaherty said Canada’s deficit in the fiscal year that ended March 31 may exceed the prior estimate of a record CAD 53.8 billion.
However faster growth this year may boost tax revenue and help Flaherty maintain efforts to shift his focus to eliminating the deficit, even as pressure for additional stimulus grows.
Meanwhile, the loonie was also up against the euro, with EUR/CAD shedding 0.30% to hit 1.4027.
Later in the day, the Fed was to publish the minutes of its September 21 meeting of the Federal Open Market Committee.