Investing.com - The U.S. dollar trimmed gains against its Canadian counterpart on Wednesday, pulling back from a one-week high, as signs of a slower pace of rate hikes in the U.S. continued to weigh on the greenback, while declining oil prices dampened demand for the Canadian currency.
USD/CAD pulled back from 1.3409, the pair’s highest since March 15, to hit 1.3394 during early U.S. trade, still up 0.31%.
The pair was likely to find support at 1.3262, Tuesday’s low and resistance at 1.3487, the high of March 15.
The greenback weakened after Chicago Federal Reserve President Charles Evans said on Monday that the Fed is on track to raise rates twice more this year, underlining the view that the central bank will stick to a gradual pace of tightening after last week’s rate hike.
The dollar was also vulnerable after G20 financial leaders dropped a pledge to keep global trade free and open during talks this weekend, following opposition from the increasingly protectionist Trump administration.
The move renewed uncertainty over U.S. trade relations and by extension the Trump administration’s concerns over the strong dollar.
But the commodity-related Canadian dollar was also under pressure as oil prices turned sharply lower on Wednesday, after data overnight showed another increase in U.S. crude supplies.
The loonie was lower against the euro, with EUR/CAD adding 0.19% at 1.4463.