Investing.com - The U.S. dollar edged down to fresh nine-month lows against its Canadian counterpart on Wednesday, as sentiment on the greenback remained fragile before the Federal Reserve’s upcoming policy statement and as higher oil prices supported the Canadian currency.
USD/CAD hit 1.2575 during early U.S. trade, the pair’s lowest since July; the pair subsequently consolidated at 1.2590, slipping 0.10%.
The pair was likely to find support at 1.2470 and resistance at 1.2760, the high of April 22.
Investors remained cautious ahead of the Fed’s policy statement amid ongoing uncertainty over the pace and timing of future rate hikes.
Meanwhile, the commodity-related Canadian dollar remained supported as oil prices climbed to five-month highs on Wednesday.
The loonie was fractionally lower against the euro, with EUR/CAD up 0.08% to 1.4248.