Forexpros – The U.S. dollar remained lower against its Canadian counterpart on Wednesday, after European Central Bank President Mario Draghi said the euro zone economy faces “increased downside risks” but held back from announcing fresh stimulus measures.
USD/CAD hit 1.0311 during early U.S. trade, the pair’s lowest since May 31; the pair subsequently consolidated at 1.0319, shedding 0.56%.
The pair was likely to find support at 1.0309, the session low and resistance at 1.0424, Tuesday’s high.
Speaking at the ECB’s post policy meeting press conference, Draghi said that there were downside risks to the European economy, stemming from the debt crisis in the region and its growing potential to spill over to the wider economy.
Draghi said the bank would extend its policy of lending banks until mid-January 2013 but didn’t announce any new three-year lending operations, disappointing market expectations for fresh easing measures to stabilize markets.
Earlier Wednesday, the ECB left euro zone interest rates unchanged at 1%, in a widely expected decision.
The decision came one day after Spain warned that it was having difficulty accessing credit markets, while uncertainty over the outcome of Greek elections on June 17 also weighed.
The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD shedding 0.24% to hit 1.2889.
Later in the day, the U.S. was to produce government data on crude oil stockpiles, while the Federal Reserve was to release its Beige Book.
Forexpros
