Investing.com – The Canadian dollar slipped to a two-day low against its U.S. counterpart on Wednesday, as concerns over the outlook for the global economic recovery as well as fears over Japan’s nuclear crisis and volatility in the Middle East weighed.
USD/CAD hit 0.9843 during early U.S. trade, the pair’s highest since Monday; the pair subsequently consolidated at 0.9830, gaining 0.20%.
The pair was likely to find support at 0.9746, Tuesday’s low and resistance at 0.9938, the high of March 17.
Fresh concerns over the nuclear crisis in Japan arose after radioactive iodine was detected in Tokyo tap water, prompting a warning that infants should not drink the water.
Meanwhile, in the euro zone, the fate of Portugal’s minority government was hinging on a vote on austerity measures later in the day while in Ireland widening debt spreads continue to worry investors.
Also Wednesday, U.K. Chancellor George Osborne said economic growth would be slower than previously expected in 2011.
Oil prices remained well supported amid continued unrest in North Africa and the Middle East, fanning fears over the inflationary impact on global economic growth.
The loonie was also down against the yen, with CAD/JPY shedding 0.41% to hit 82.21.
Also Wednesday, Canada was facing the prospect of its third election in five years, after the three opposition parties rejected the proposed federal budget.
USD/CAD hit 0.9843 during early U.S. trade, the pair’s highest since Monday; the pair subsequently consolidated at 0.9830, gaining 0.20%.
The pair was likely to find support at 0.9746, Tuesday’s low and resistance at 0.9938, the high of March 17.
Fresh concerns over the nuclear crisis in Japan arose after radioactive iodine was detected in Tokyo tap water, prompting a warning that infants should not drink the water.
Meanwhile, in the euro zone, the fate of Portugal’s minority government was hinging on a vote on austerity measures later in the day while in Ireland widening debt spreads continue to worry investors.
Also Wednesday, U.K. Chancellor George Osborne said economic growth would be slower than previously expected in 2011.
Oil prices remained well supported amid continued unrest in North Africa and the Middle East, fanning fears over the inflationary impact on global economic growth.
The loonie was also down against the yen, with CAD/JPY shedding 0.41% to hit 82.21.
Also Wednesday, Canada was facing the prospect of its third election in five years, after the three opposition parties rejected the proposed federal budget.