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Forex - USD/CAD edges lower in quiet trade

Published 08/19/2013, 09:23 AM
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar edged lower against the Canadian dollar in quiet trade on Monday as investors awaited this week’s Federal Reserve minutes amid widespread speculation over how soon the central bank will start to phase out stimulus measures.

USD/CAD hit 1.0316 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0332, edging down 0.06%.

The pair was likely to find support at 1.0292, Friday’s low and resistance at 1.0359, Friday’s high.

Investors were looking ahead to the minutes of the Fed’s July meeting, due out on Wednesday, for further indications as to when the central bank may start to taper its USD85 billion-a-month asset purchase program.

Expectations that the Fed may begin tapering as soon as September were boosted late last week after data showed that U.S. weekly jobless claims fell to an almost six year low.

The loonie, as the Canadian dollar is also known, was slightly lower against the euro, with EUR/CAD easing up 0.11% to 1.3794.

The single currency found support after Germany’s central bank said Monday the European Central Bank’s forward guidance on interest rates was not an "unconditional commitment".

In its monthly report, Germany’s Bundesbank said that Germany and euro zone member states would benefit from record low interest rates set by the ECB. However, the report added that the ECB’s pledge to keep bank rates at low levels for an extended period would continue to depend on the medium term inflation outlook.



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