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USD/CAD edges higher ahead of Trump remarks

01/11/2017

The U.S. dollar edged higher against its U.S. counterpart on Wednesday, as investors eyed highly-anticipated remarks by U.S. President elect Donald Trump due later in the day.

USD/CAD hit 1.3255 during early U.S. trade, the session high; the pair subsequently consolidated at 1.3253, up 0.17%.

The pair was likely to find support at 1.3189, Tuesday’s low and resistance at 1.3278, Monday’s high.

Later Wednesday, Donald Trump was scheduled to speak at his press conference since winning the U.S. presidential election in November. Market participants were eyeing any further information on Trump’s future economic policies.

The greenback continued to be underpinned by expectations for higher interest rates this year.

The Federal Reserve raised interest rates in December and indicated that it expects to hike rates three more times in 2017.

Boston Fed President Eric Rosengren on Monday called for the U.S. central bank to step up the pace of interest rate increases, warning that inflation could overshoot its target if it does not.

Meanwhile, the commodity-related Canadian dollar found some support amid higher oil prices, as traders were also eyeing fresh weekly data on U.S. stockpiles of crude and refined products.

The loonie was higher against the euro, with EUR/CAD sliding 0.37% to 1.3914.