Investing.com - The U.S. dollar rose to a one-week high against its Canadian counterpart on Wednesday, as market sentiment was hit by concerns over the outlook for global economic growth and as declining oil prices particularly weighed on the Canadian currency.
USD/CAD hit 1.3095 during early U.S. trade, the pair’s highest since July 12; the pair subsequently consolidated at 1.3084, advancing 0.46%.
The pair was likely to find support at 1.2936, Tuesday’s low and resistance at 1.3134, the high of July 12.
Market sentiment weakened after the International Monetary Fund on Tuesday downwardly revised its projection for global economic growth in 2016 to 3.1%, from the prior 3.2%, though expecting a rebound to 3.4% in 2017.
The IMF cut the U.S. growth forecast to 2.2% from 2.4%, but said the Brexit impact on the U.S. economy would be muted and explained that the reduction was due to weaker than expected first quarter gross domestic product.
The commodity-related Canadian dollar was also hit as oil prices moved lower ahead of the weekly U.S. report on crude stockpiles.
The loonie was lower against the euro, with EUR/CAD rising 0.24% to 1.4388.