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Forex - USD/CAD steady in quiet trade

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Investing.com - The U.S. dollar was steady close to eight-month highs against the Canadian dollar in quiet trade on Tuesday as investors awaited Wednesday's rate statement by the Bank of Canada.

USD/CAD hit 1.0278 during early U.S. trade, the session high; the pair subsequently consolidated at 1.0266, dipping 0.03%.

The pair was likely to find support at 1.0215, the low of February 28 and resistance at 1.0341, the high of March 1 and an eight-month high.

Investors remained cautious as worries over political uncertainty in Italy and spending cuts in the U.S., known as the sequester, weighed on the outlook for global growth.

The BoC was widely expected to leave rates on hold at 1% on Wednesday, but investors were anticipating the central bank's rate statement after Governor Mark Carney said last month that rate hikes were "less imminent", citing a weaker inflation outlook.

The Canadian dollar remained supported after official data on Friday showed that gross domestic product grew at an annualized rate of 0.6% in the fourth quarter, in line with economists' expectations.

Some investors had been expecting significantly weaker-than-forecast data following a recent string of poor Canadian data.

The loonie, as the Canadian dollar is known, was slightly lower against the euro, with EUR/CAD easing up 0.12% to 1.3393.

The Institute of Supply Management was to release a report on U.S. service sector activity later in the trading day.

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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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