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Forex - USD/CAD edges higher ahead of BoC decision

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Investing.com - The U.S. dollar edged higher against the Canadian dollar on Wednesday, ahead of the Bank of Canada's policy decision later in the session and after data showed that the U.S. private sector added more jobs than expected last month.

USD/CAD hit 1.0296 during early U.S. trade, the pair's highest since Monday; the pair subsequently consolidated at 1.0282, gaining 0.12%.

The pair was likely to find support at 1.0215, the low of February 28 and resistance at 1.0312, the high of the same day.

The BoC was widely expected to keep rates on hold at 1.00%, but investors were focusing on the central bank's rate statement after Governor Mark Carney said last month that rate hikes were "less imminent", citing a weaker inflation outlook.

In the U.S., data showed that ADP nonfarm payrolls rose by a seasonally adjusted 198,000 in February, above expectations for an increase of 170,000.

The previous month's figure was revised up to a gain of 215,000 from a previously reported increase of 192,000.

Investor sentiment remained cautious ahead of the European Central Bank's policy meeting on Thursday amid concerns that President Mario Draghi may flag possible rate cuts in the future.

The Bank of England and the Bank of Japan were also to hold policy setting meetings on Thursday.

The loonie, as the Canadian dollar is also known, was slightly higher against the euro, with EUR/CAD slipping 0.12% to 1.3387.

The U.S. was to publish official data on factory orders later in the trading day, while Canada was to publish its Ivey PM.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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