Forex – USD/CAD Hits Fresh 4-Month Lows After U.S., Canadian Data

© Reuters. Greenback tumbles vs. loonie in early trade – The U.S. dollar hit fresh four-month lows against its Canadian counterpart on Wednesday, after the release of positive Canadian and U.S. data as investors remained cautious with the greenback ahead of the Federal Reserve’s policy decision due later in the day.

was down 0.41% at a four-month low of 1.2283 by 09:30 a.m. ET (13:30 GMT).

Statistics Canada reported on Wednesday that the country’s gross domestic product expanded by in November, in line with expectations and after the economy stagnated in October.

A separate report showed that Canada’s raw materials price index fell last month, compared to expectations for a 2.2% drop.

In the U.S., ADP payrolls processing firm reported that the private sector created in January, beating expectations for a 186,000 rise.

But the greenback remained under pressure ahead of the Fed’s monetary due later Wednesday, with hopes the central bank will give more hints on the pace of future rate hikes.

The U.S. dollar also moved lower following U.S. President Donald Trump’s first State of the Union address late Tuesday.

Amid positive comments on what the U.S. President described as a “New American Moment” characterized by prosperity, rebuilding and cooperation, Donald Trump also underlined the need to end participation in large, multilateral treaties, as well as in unfair trade practices by other nations.

Trump also urged Congress to pass legislation in new infrastructure spending.

The loonie was little changed against the euro, with at 1.5296.

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