Investing.com – The U.S. dollar was sharply lower against its Canadian counterpart on Wednesday, as speculation that the Federal Reserve may signal the need for additional monetary stimulus at the end of its policy meeting later weighed on the greenback.
USD/CAD hit 1.0113 during early U.S. trade, the daily low; the pair subsequently consolidated at 1.0127, falling 0.73%.
The pair was likely to find support at 0.9972, Tuesday’s low and resistance at 1.0222, the days high and an almost two-week high.
Investors remained on edge amid speculation that the Fed could revise down its forecasts for economic growth at the end of its two-day policy-setting meeting later Wednesday.
Earlier in the day, a report showed that U.S. private sector employment increased more-than-expected in October, as the service sector expanded.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 110,000 in October, beating expectations for an increase of 100,000.
The previous month’s figure was revised up to a gain of 116,000 from a previously reported increase of 91,000.
The broadly weaker dollar also supported crude oil prices, with the December crude contract on the New York Mercantile Exchange rallying 1.10% to trade at a two-day high of USD93.20 a barrel.
Raw materials, including oil account for about half of Canada’s export revenue.
The Canadian dollar was almost unchanged against the euro, with EUR/CAD dipping 0.01% to hit 1.3982.
Later Wednesday, Fed Chairman Ben Bernanke was to conduct the central bank’s closely watched post-policy meeting press conference.
USD/CAD hit 1.0113 during early U.S. trade, the daily low; the pair subsequently consolidated at 1.0127, falling 0.73%.
The pair was likely to find support at 0.9972, Tuesday’s low and resistance at 1.0222, the days high and an almost two-week high.
Investors remained on edge amid speculation that the Fed could revise down its forecasts for economic growth at the end of its two-day policy-setting meeting later Wednesday.
Earlier in the day, a report showed that U.S. private sector employment increased more-than-expected in October, as the service sector expanded.
Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 110,000 in October, beating expectations for an increase of 100,000.
The previous month’s figure was revised up to a gain of 116,000 from a previously reported increase of 91,000.
The broadly weaker dollar also supported crude oil prices, with the December crude contract on the New York Mercantile Exchange rallying 1.10% to trade at a two-day high of USD93.20 a barrel.
Raw materials, including oil account for about half of Canada’s export revenue.
The Canadian dollar was almost unchanged against the euro, with EUR/CAD dipping 0.01% to hit 1.3982.
Later Wednesday, Fed Chairman Ben Bernanke was to conduct the central bank’s closely watched post-policy meeting press conference.