Forexpros - The U.S. dollar was lower against the Canadian dollar on Wednesday, ahead of the release of the Bank of Canada’s monetary policy report and the Federal Reserve’s rate statement later in the session. USD/CAD hit 0.9889 during early U.S. trade, the pair’s lowest since October 19; the pair subsequently consolidated at 0.9910, slipping 0.13%. The pair was likely to find support at 0.9843, the low of October 19 and resistance at 0.9974, Tuesday’s high and a two-and-a-half month high. The BoC was to release its monetary policy report later in the session, which was to be followed by a press conference with Governor Mark Carney to discuss Tuesday’s rate decision. The BoC left its benchmark interest rate unchanged at 1.00% and indicated that while policymakers believe rate hikes may still be required they are unlikely to come in the near future. The greenback remained supported as weak euro zone PMI’s and deteriorating German business sentiment data earlier in the day supported safe haven demand. The loonie, as the Canadian dollar is also known, was higher against the euro, with EUR/CAD shedding 0.28% to trade at 1.2851. Later Wednesday, the Federal Reserve was to announce its benchmark interest rate and release its first monetary policy statement since the central bank announced a third round of quantitative easing in September. The U.S. was to release official data on new home sales.

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