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Forex - USD/CAD slides lower, all eyes on Fed

Published 10/28/2015, 09:27 AM
Greenback falls against loonie ahead of Fed statement
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar slid lower against its Canadian counterpart on Wednesday, pulling away from a one-month high as sentiment on the greenback was vulnerable ahead of the Federal Reserve's monthly policy statement due later in the day.

USD/CAD hit 1.3223 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3220, shedding 0.37%.

The pair was likely to find support at 1.3116, the low of October 26 and resistance at 1.3334, the high of October 1.

The Fed was not expected to raise interest rates later Wednesday, but many investors still expected the U.S. central bank to signal that rates could still rise at its December meeting.

Data on Tuesday showing that a key measure of U.S. business investment plans fell for a second straight month in September curtailed expectations for higher interest rates.

Orders for nondefense capital goods excluding aircraft, a proxy for company spending on equipment, fell 0.3% in September after a 1.6% decline in August.

Another report showed that U.S. consumer confidence declined this month.

Earlier Wednesday, the Mortgage Bankers Association said their mortgage market index, a measure of mortgage loan application volume, declined by 3.5% in the week ending October 23 to 417.4. That follows a gain of 11.8% to 432.7 in the preceding week.

The loonie was steady against the euro, with EUR/CAD at 1.4645.

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