Forex - USD/CAD dips after BoC leaves rate unchanged
Investing.com
Published Jul 17, 2012 09:19AM ET
USD/CAD pulled back from 1.0159, the session high, to hit 1.0140 during early U.S. trade, dipping 0.09%.
The pair was likely to find support at 1.0119, the low of July 4 and resistance at 1.0202, the high of July 13.
“While global headwinds are restraining Canadian economic activity, domestic factors are expected to support moderate growth,” the central bank said. “Some modest withdrawal of the present considerable monetary policy stimulus may become appropriate.”
The greenback hit a session high against the Canadian dollar earlier, after official data showed that Canadian manufacturing sales unexpectedly fell 0.4% in May, declining for the second consecutive month.
Meanwhile, investors were looking ahead to testimony to the Senate by Federal Reserve Chairman Ben Bernanke later Tuesday, amid ongoing speculation over whether the U.S. central bank will introduce more easing to stimulate the economy.
Expectations for another round of easing by the bank were boosted on Monday after official data showing a third consecutive monthly decline in U.S. retail sales in June.
The greenback was little changed after official data showed that core consumer price inflation in the U.S. rose 0.2% in June, broadly in line with market expectations, while prices including food and energy costs were flat.
The loonie, as the Canadian dollar is also known, was fractionally higher against the euro, with EUR/CAD dipping 0.04% to 1.2449.
Also Tuesday, the U.S. was to publish official data on the capacity utilization rate and industrial production.
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Written By: Investing.com
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