Investing.com - The U.S. dollar rose to six-week highs against the Canadian dollar on Wednesday, ahead of the keenly anticipated release of the minutes from the Federal Reserve’s latest policy setting meeting later in the session.
USD/CAD hit 1.0448 during early U.S. trade, the highest since July 11; the pair subsequently consolidated at 1.0440, gaining 0.46%.
The pair was likely to find support at 1.0386, the session low and resistance at 1.0470, the high of July 11.
Investors were awaiting the release of the minutes from the Fed’s July meeting later Wednesday for further indications as to when the central bank may start tapering its USD85 billion-a-month asset purchase program.
Market sentiment has been hit by mounting expectations that the Fed may start to phase out stimulus measures, known as quantitative easing, as soon as next month.
Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.
Elsewhere, the loonie, as the Canadian dollar is also known, was trading close to 22-month lows against the euro, with EUR/CAD rising 0.16% to 1.3967.
The U.S. was to release private sector data on new home sales later Wednesday, ahead of the Fed minutes.
USD/CAD hit 1.0448 during early U.S. trade, the highest since July 11; the pair subsequently consolidated at 1.0440, gaining 0.46%.
The pair was likely to find support at 1.0386, the session low and resistance at 1.0470, the high of July 11.
Investors were awaiting the release of the minutes from the Fed’s July meeting later Wednesday for further indications as to when the central bank may start tapering its USD85 billion-a-month asset purchase program.
Market sentiment has been hit by mounting expectations that the Fed may start to phase out stimulus measures, known as quantitative easing, as soon as next month.
Fed Chairman Ben Bernanke has said that the decision to start tapering will depend on whether economic data is strong enough.
Elsewhere, the loonie, as the Canadian dollar is also known, was trading close to 22-month lows against the euro, with EUR/CAD rising 0.16% to 1.3967.
The U.S. was to release private sector data on new home sales later Wednesday, ahead of the Fed minutes.