Forex – USD/CAD tumbles to 12-day low as FOMC looms

Published 11/02/2010, 11:24 AM
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Investing.com – The Canadian dollar soared to a 12-day high against its U.S. counterpart on Tuesday as crude oil prices rallied on the back of a broadly weaker U.S. dollar.

USD/CAD hit 1.0082 during European afternoon trade, the pair’s lowest since October 15; the pair subsequently consolidated at 1.0101, shedding 0.48%.

The pair was likely to find support at 1.0011, the low of October 15 and resistance at 1.0201, Monday’s high.

Earlier in the day, crude oil prices jumped 1.10% to hit a 4-week high of USD 83.86 a barrel. The loonie closely tracks changes in the price of crude oil as Canada is a major supplier of crude oil to the U.S.

Meanwhile, the loonie was down against the euro, with EUR/CAD gaining 0.46% to hit 1.4171.

Later in the day, Federal Reserve policy makers were to begin their 2-day November policy meeting, which was widely expected to result in the unveiling of fresh monetary easing. Also Tuesday, U.S. mid-term elections were due to be held.

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