Greenback edges lower vs. loonie after mixed U.S. economy reports
Investing.com — The U.S. dollar slipped lower against its Canadian counterpart on Tuesday, after the release of mixed U.S. economic reports and ahead of the Federal Reserve’s monthly policy meeting, though better-than-expected data from Canada lent support to the local currency.
USD/CAD was down 0.17% at 1.2277, by 09: 30 ET (13:30 GMT).
The U.S. Commerce Department reported Tuesday that the number of housing starts unexpectedly fell in August, while building permits unexpectedly jumped.
Separate reports showed that U.S. import prices posted their largest gain in seven months in August, while the current account deficit has widened more than expected in the second quarter.
During this time, the Fed was widely expected to leave its interest rates unchanged after its two-day policy meeting on Thursday. However, the U.S. central bank could provide guidance on when it plans to start unwinding the balance sheet, as well as on future interest rate decisions.
In Canada, official data on Tuesday showed that manufacturing sales fell 2.6% in July, compared to expectations for a decline of 1.6%.
Manufacturers ‘ sales slid 1.9% in June, whose figure was revised from a previously estimated 1.8% fall.
Commodities Canadian dollar has also benefited from the recent upward trend in oil prices, helped by an overall positive outlook for the global supply and demand.
The loonie was lower against the euro, with EUR/CAD rising 0.12% to 1.4717.