Investing.com - The U.S. dollar edged higher against the Canadian dollar on Wednesday, as investors awaited the outcome of the Federal Reserve’s latest policy meeting later in the trading day.
USD/CAD inched up 0.05% to 1.0866, from 1.0859 late Tuesday.
The pair was likely to find support at 1.0821, the low of May 30 and resistance at 1.0905.
The greenback remained supported after official data on Tuesday showed that U.S. consumer prices rose 0.4% in May from a month earlier, bringing the annual rate of inflation to 2.1%. It was the fastest monthly increase in inflation in more than a year, beating forecasts of 0.2%.
The uptick in inflation indicated that the economic recovery is deepening and boosted expectations for a more hawkish stance on interest rates from the Fed.
Investors were looking ahead to the bank’s post-policy meeting press conference with Chair Janet Yellen later Wednesday, as they awaited fresh indications on the timing of possible interest rate increases.
The Fed was expected to cut its asset purchase program by another $10 billion, but is not expected to raise borrowing costs until mid-2015.
The loonie, as the Canadian dollar is also know, showed little reaction after data on Wednesday showed that domestic wholesale sales rose 1.2% to C$51.2 billion in April, surpassing expectations for a 0.3% gain.
Elsewhere, the loonie was lower against the euro, with EUR/CAD rising 0.23% to 1.4746.
Please LIKE our Facebook page - it makes us stronger: