Forex - USD/CAD trims gains ahead of Fed meeting minutes

Forex

The U.S. dollar trimmed gains against its Canadian counterpart on Wednesday, as investors remained cautious ahead of the minutes of the Federal Reserve’s latest policy meeting, due to be released later in the day.

USD/CAD pulled back from 1.2917, the session high, to hit 1.2875 during early U.S. trade, still up 0.11%.

The pair was likely to find support at 1.2793, Tuesday’s low and a one-and-a-half month low and resistance at 1.2976, Monday’s high.

The dollar strengthened broadly after Atlanta Federal President President Dennis Lockhart said on Tuesday that two rate hikes in 2016 were a possibility.

The comments came shortly after New York Fed head William Dudley said that the U.S. central bank might raise rates as soon as its September policy meeting.

The Fed kept interest rates unchanged following its meeting on July 27 and said near-term risks to the U.S. economic outlook had diminished. However, the central bank stopped short of signaling a near-term rate rise.

Meanwhile, the commodity-related Canadian dollar remained under pressure as oil prices moved back lower on Wednesday on bets for bearish U.S. stockpile data later in the day.

The loonie was fractionally lower against the euro, with EUR/CAD easing up 0.08% to 1.4519.

Source by Investing.com