Daily Afternoon Report 08.02.2017

The U.S. dollar fell against its Canadian counterpart on Wednesday, pulling away from the previous session’s two=week high, but losses were expected to remain limited as concerns over geopolitical uncertainties in Europe lent broad support to the greenback.

USD/CAD hit 1.3144 during early U.S. trade, the session low; the pair subsequently consolidated at 1.3150, shedding 0.27%.

The pair was likely to find support at 1.3072, Tuesday’s low and resistance at 1.3272, the high of January 18.

Markets were jittery amid concerns over the possibility of a Brexit or Trump-style shock result in France’s upcoming presidential election.

Worries over elections in the Netherlands, Germany and possibly Italy, as well as the ongoing row over Greece’s bailout added to concerns over political risk in the euro area.

Meanwhile, sentiment on the greenback remained supported after Minneapolis Federal Reserve Bank President Neel Kashkari said on Tuesday that the U.S. central bank should keep monetary policy moderately accommodative.

The comments came a day after Philly Fed President Patrick Harker said he would support hiking rates in March.

The commodity-related Canadian dollar shrugged off a decline in oil prices on Wednesday, ahead of the weekly report on U.S. inventories.

The loonie was higher against the euro, with EUR/CAD sliding 0.20% to 1.4055.