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Forex - USD/CAD hits session lows in early trade

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Investing.com - " The U.S. dollar fell against the Canadian dollar in early trade on Wednesday after data showing that the U.S. private sector added fewer jobs than expected in October cemented the view that the Federal Reserve will keep stimulus measures in place after its monthly meeting later in the day.

USD/CAD hit 1.0441 during early U.S. trade, the session low; the pair subsequently consolidated at 1.0449, shedding 0.18%.

The pair was likely to find support at 1.0426, Tuesday's low and resistance at 1.0471, the session high and a one-and-a-half month high.

Payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 130,000 in October, below expectations for an increase of 150,000.

The previous month's figure was revised down to a gain of 145,000 from a previously reported increase of 166,000.

A separate report showed that U.S. consumer prices rose 0.2% in September, in line with forecasts, after rising by 0.1% in August.

The Fed was not expected to announce any change to its USD85 billion-a-month asset purchase program on Wednesday.

Many investors instead expect the Fed to maintain its stimulus program well into the first quarter of next year, in order to safeguard the fragile U.S. economic recovery in the wake of this month's 16-day government shutdown.

The Canadian dollar fell to fresh one-and-a-half month lows against the greenback earlier in the trading day after Bank of Canada Governor Stephen Poltz said Monday that persistently low levels of inflation were of increasing importance to the bank.

Last week the Canadian dollar dropped after the BoC dropped language referring to the need for eventual rate hikes from its rate statement, and cut its economic outlook.

Elsewhere, the loonie, as the Canadian dollar is also known, was slightly higher against the euro, with EUR/CAD slipping 0.11% to 1.4371.

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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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