Investing.com - The U.S. dollar slipped lower against the Canadian dollar on Monday as uncertainty over the direction of U.S. monetary policy continued after the Federal Reserve’s surprise decision last week to announce no reduction to its stimulus program.
USD/CAD hit 1.0276 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0283, slipping 0.23%.
The pair was likely to find support at 1.0261, Friday’s low and resistance at 1.0309, Friday’s high.
The greenback remained under pressure after the Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program.
The decision surprised markets, which had been expecting the U.S. central bank to cut its USD85 billion-a-month stimulus program by USD10 billion to USD15 billion.
The greenback found some support after St. Louis Federal Reserve President James Bullard said Friday the decision not to taper in September was “close” and indicated that there could be a small reduction in bond purchases in October.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD sliding 0.36% to 1.3889.
The euro touched session lows after data showed that manufacturing output in the euro zone was weaker than expected this month, but this was offset by an improvement in service sector activity.
The preliminary reading of the euro zone manufacturing purchasing managers’ index fell to 51.1 in September from a final reading of 51.4 in August. Analysts had expected the index to inch up to 51.8.
However, the euro zone services PMI rose to 52.1, the highest level since June 2011, from 50.7 in August and above expectations for a reading of 51.1.
Demand for the euro continued to be underpinned after German Chancellor Angela Merkel's conservative party won general elections on Sunday, securing her a historic third term in office. Political party leaders were due to meet later Monday to discuss coalition talks.
USD/CAD hit 1.0276 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0283, slipping 0.23%.
The pair was likely to find support at 1.0261, Friday’s low and resistance at 1.0309, Friday’s high.
The greenback remained under pressure after the Fed said last week that it wanted to see more evidence of a sustained economic recovery before it adjusted the scale of its bond buying program.
The decision surprised markets, which had been expecting the U.S. central bank to cut its USD85 billion-a-month stimulus program by USD10 billion to USD15 billion.
The greenback found some support after St. Louis Federal Reserve President James Bullard said Friday the decision not to taper in September was “close” and indicated that there could be a small reduction in bond purchases in October.
Elsewhere, the loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD sliding 0.36% to 1.3889.
The euro touched session lows after data showed that manufacturing output in the euro zone was weaker than expected this month, but this was offset by an improvement in service sector activity.
The preliminary reading of the euro zone manufacturing purchasing managers’ index fell to 51.1 in September from a final reading of 51.4 in August. Analysts had expected the index to inch up to 51.8.
However, the euro zone services PMI rose to 52.1, the highest level since June 2011, from 50.7 in August and above expectations for a reading of 51.1.
Demand for the euro continued to be underpinned after German Chancellor Angela Merkel's conservative party won general elections on Sunday, securing her a historic third term in office. Political party leaders were due to meet later Monday to discuss coalition talks.