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USD/CAD challenges 1.3300

FXStreet (Edinburgh) - The softer tone in the greenback is now dragging USD/CAD to fresh lows in the 1.3300 neighbourhood.

USD/CAD attention to FOMC minutes

The pair remains in a corrective mode after hitting fresh multi-week highs near 1.3370 on Monday, although sellers remain unable to breach the 1.3300 handle on a more convincing way.

In the meantime, today’s FOMC minutes will put the recent USD rally to the test, while market participants expects the Committee to confirm its prospects of a rate hike in the next month.

USD/CAD levels to consider

As of writing, the pair is down 0.07% at 1.3301 with the next support at 1.3217 (38.2% Fibo of 1.3459-1.2827) ahead of 1.3187 (55-day sma) and then 1.3114 (100-day sma). On the other hand, a breakout of 1.3360 (downtrend from 1.3458) would open the door to 1.3373 (high Nov.16) and then 1.3458 (2015 high Sep.29).

October FOMC minutes preview – Nomura

Research Team at Nomura, suggests that since the 27-28 October policy meeting, we have heard from a majority of FOMC members on their views on current economic conditions and monetary policy and there seems to be a tentative consensus growing around a December liftoff of short-term interest rates.
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FOMC minutes to be more balanced – Deutsche Bank

Craig Nicol, Research Analyst at Deutsche Bank, suggests that the focus of today will be on the FOMC minutes from the October 27th and 28th meeting, due out at 7pm GMT.
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