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  • The greenback trades lower on the FOMC’s minutes but the US Dollar Index remains near multi-week highs.
  • USD/CAD remains in a trading range between the 1.2750 and 1.2900 levels

The USD/CAD established a high of the day at 1.2917 in the American session and then retreated back below the 1.2850 level after the FOMC’s minutes. The Loonie is currently trading at around 1.2834 up 0.12% on Wednesday.

In fact, the FOMC’s minutes revealed that it would “soon be appropriate  to hike”, however, comments such as “many saw little evidence of overheating of the labor market with wage pressures still moderate” left traders with the impression that the Fed was not in a strong rush to hike.  

In fact, most market participants “bought the rumor and sold the fact” as the US dollar traded down across the board after the report. However, it is worth noting that the greenback is still trading at multi-week highs.  

USD/CAD 4-hour chart  

USD/CAD remains rather neutral trading in a range between the 1.2750 and 1.2900 levels. The main moving averages are flat and key supports are seen at the 1.2800 handle and at 1.2750 level while resistances are seen at the 1.2900 and 1.3000 figure.