Investing.com - The U.S. dollar was sharply lower against the Canadian dollar on Wednesday, after U.S. lawmakers reached an agreement to avert the fiscal cliff, bolstering demand for higher-yielding assets.
USD/CAD hit 0.9839 during early U.S. trade, the pair’s lowest since December 18; the pair subsequently consolidated at 0.9838, tumbling 0.84%.
The pair was likely to find support at 0.9763, the low of October 18 2012, and resistance at 0.9909, Mondays close.
Risk appetite sharpened after U.S. lawmakers passed a compromise bill on Tuesday to avoid the fiscal cliff, blocking a series of looming tax increases and spending cuts that could have pushed the U.S. economy into a recession.
U.S. President Barack Obama hailed the deal as "just one step in the broader effort to strengthen the economy".
However, investors remained cautious over the longer term outlook, with negotiations on raising the U.S. debt ceiling still to come in February.
The loonie, as the Canadian dollar is also known, was up against the euro, with EUR/CAD losing 0.46% to trade at 1.3026 and was sharply higher against the broadly weaker yen, with CAD/JPY jumping 1.34% to 88.56.
Later Wednesday the Institute of Supply Management was to produce a report on U.S. manufacturing growth.
USD/CAD hit 0.9839 during early U.S. trade, the pair’s lowest since December 18; the pair subsequently consolidated at 0.9838, tumbling 0.84%.
The pair was likely to find support at 0.9763, the low of October 18 2012, and resistance at 0.9909, Mondays close.
Risk appetite sharpened after U.S. lawmakers passed a compromise bill on Tuesday to avoid the fiscal cliff, blocking a series of looming tax increases and spending cuts that could have pushed the U.S. economy into a recession.
U.S. President Barack Obama hailed the deal as "just one step in the broader effort to strengthen the economy".
However, investors remained cautious over the longer term outlook, with negotiations on raising the U.S. debt ceiling still to come in February.
The loonie, as the Canadian dollar is also known, was up against the euro, with EUR/CAD losing 0.46% to trade at 1.3026 and was sharply higher against the broadly weaker yen, with CAD/JPY jumping 1.34% to 88.56.
Later Wednesday the Institute of Supply Management was to produce a report on U.S. manufacturing growth.