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Forex - USD/CAD Near 3-Month Highs Ahead of FOMC Statement

Published 11/01/2017, 09:30 AM
© Reuters.  Greenback stronger vs. loonie with eyes on Fed decision
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Investing.com - The U.S. dollar edged up near three-month highs against its Canadian counterpart on Wednesday, after the release of upbeat U.S. jobs data and ahead of the Federal Reserve's highly-anticipated policy statement.

USD/CAD was up 0.13% at 1.2906 by 09:30 a.m. ET (13:30 GMT), just off Friday's three-month peak of 1.2917.

The dollar found support after payrolls processor ADP said U.S. private employers added 235,000 jobs in October, beating economists' expectations.

Later Wednesday, the Fed was expected to leave interest rates unchanged at the conclusion of its two-day policy meeting, but investors were waiting for any indications that it will resume raising rates next month as expected, and the timing of any rate hikes in 2018.

Separately, U.S. President Donald Trump was expected to announce his pick for the next chair of the Fed on Thursday. While there are five key candidates, Fed Governor Jerome Powell is seen as a potential winner.

Market participants were also looking ahead to a speech by Bank of Canada Governor Stephen Poloz scheduled later in the day before the Standing Senate Committee on Banking, Trade and Commerce.

The loonie was higher against the euro, with EUR/CAD down 0.13% at 1.4988.

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