On Wednesday the U.S. dollar fell to three-month lows against loonie, after data showed that the U.S. economy grew
less than expected in the last quarter and as markets eyed the Federal
Reserve's upcoming policy statement.
USD/CAD hit 1.1994 during early U.S. trade, the pair's lowest since January 20; the pair subsequently consolidated at 1.2006, shedding 0.21%. The pair was likely to find support at 1.1031, the low of January 20 and resistance at 1.2118, Tuesday's high.
The U.S. gross domestic product grew at an annual rate of 0.2% in the first quarter of 2015, below expectations for growth of 1%. The U.S. economy expanded by 2.2% in the previous quarter.
The data added to a recent run of downbeat data which has prompted investors to scale back expectations on the timing of a first rate hike by the U.S. central bank.
Market players were now anticipating a report on pending home sales later in the trading day for further implications on the strength of the recovery, ahead of the Fed's policy announcement.
In Canada, data on Wednesday showed that raw materials prices fell 0.9% last month, compared to expectations for a 1.8% decline. March's figure was revised to a 5.9% rise from a previously estimated increase of 6.1%.
The Canadian dollar was lower against the euro, with EUR/CAD rising 0.34% to 1.3258.
In the euro zone, data showed that German consumer price inflation accelerated at an annualized rate of 0.4% this month, meeting forecasts and compared to a reading of 0.3% in March.
German consumer prices dipped 0.1% in April month-over-month, also in line with expectations, after climbing 0.5% in the preceding month.
