US dollar traded in a narrow range against its Canadian counterpart on Wednesday, as market players were positioning in expectation of the Federal Reserve’s policy meeting later in the day.
USD/CAD pair fell to a session low at 1.0180 during the early phase of US trade, after which consolidation followed at 1.0197. Support was likely to be received at June 17th low, 1.0148, while resistance was expected at June 11th high, 1.0250.
Market sentiment was dominated by later FED’s interest rate statement and press conference, which would clarify the central bank’s position on monetary policy. FED Chairman Ben Bernanke said on May 22nd that the Federal Reserve could reduce its monthly purchases of 45 billion USD of Treasuries and 40 billion USD of mortgage-backed securities, if the employment outlook was to show sustainable improvement.
Meanwhile, earlier today an official report stated, that Wholesale Sales in Canada registered a slower than projected increase in April, as better sales figures of personal computers, communication equipment and pharmaceutic products were neutralized by weaker results in the automobile sector. Total wholesale sales rose for the fourth consecutive month in April by 0.2% to 49.03 billion CAD, while sales volume, that is included in the evaluation of Canadian Gross Domestic Product (GDP), rose by 0.4%. Experts from Royal Bank of Canada predicted a rise by 0.3% in the value of this indicator. Results during March were revised down to 0.1% from the previous 0.2%. Three out of seven researched sectors recorded higher values in April, giving 50% of the total sales. In addition, wholesale inventories increased by 0.3% on a monthly basis.
Canadian dollar was slightly higher versus the euro, as EUR/CAD pair slid by 0.15% to 1.3660.
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