Investing.com - The U.S. dollar slid lower against its Canadian counterpart on Wednesday, as sentiment on the greenback became fragile before the Federal Reserve’s policy statement due later in the day.
USD/CAD hit 1.4042 durind early U.S. trade, the session low; the pair subsequently consolidated at 1.4082, shedding 0.23%.
The pair was likely to find support at 1.3969, the low of January 6 and resistance at 1.4327, Tuesday’s high.
The Fed is expected to keep interest rate on hold at the conclusion of its two-day policy meeting later Wednesday after raising interest rates for the first time in almost a decade in December.
Investors were looking to the Fed policy statement for any indication that the bank is considering slowing the path of interest rate increases this year after recent global financial market turmoil.
Meanwhile, the commodity-related Canadian dollar found some support after oil prices rose above $32 a barrel on Tuesday and was hovering around $30 a barrel on Wednesday.
The loonie was fractionally higher against the euro, with EUR/CAD down 0.08% at 1.5332.