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USD/CAD edges higher, bounces off 10-month trough

7/6/2017, 9:36:12 AMBasics of Trading
USD/CAD edges higher, bounces off 10-month trough

The U.S. dollar edged higher against its Canadian counterpart on Wednesday, bouncing off the previous session’s 10-month trough of 1.2910 as the greenback continued to recover from recent losses and declining oil prices weighed on the Canadian currency.

USD/CAD hit 1.2974 during early U.S. trade, the session high; the pair subsequently consolidated at 1.2969, adding 0.25%.

The pair was likely to find support at 1.2910, Tuesday’s low and resistance at 1.3044, the high of June 29.

The greenback found support as upbeat U.S. manufacturing data on Monday reinforced expectations for another rate hike by the Federal Reserve this year.

The dollar had come under pressure last week amid expectations that central banks in Europe and Canada are getting ready to join the Fed in tightening monetary policy.

Meanwhile, the commodity-related Canadian dollar was hit by a decline in oil prices on Wednesday, following news of another rise in OPEC supplies.

The loonie was steady against the euro, with EUR/CAD at 1.4683