Forex – USD/CAD Slips Lower With Eyes on FOMC Decision

Forex – USD/CAD Slips Lower With Eyes on FOMC Decision

© Reuters.  Greenback loses some ground vs. loonie in early trade© Reuters. Greenback loses some ground vs. loonie in early trade – The U.S. dollar slipped lower against its Canadian counterpart on Wednesday, after the release of tepid U.S. inflation data and as sentiment on the greenback remained vulnerable ahead of the Federal Reserve’s highly-anticipated policy decision due later in the day.

was down 0.12% at 1.2851 by 09:30 a.m. ET (13:30 GMT).

Data earlier showed that U.S. consumer price inflation in November, while the core data unexpectedly eased.

Sentiment on the greenback was also vulnerable after a a U.S. Senate seat in Alabama, reducing the Republican camp’s already narrow Senate majority.

The reduced Senate majority could make it more difficult for President Donald Trump to implement tax reform plans and other economic policies.

The Fed is widely expected to raise interest rates at its two-day policy meeting that will end on Wednesday and is currently seen tightening two to three times next year, but concerns over tepid inflation could alter the outlook for 2018.

The loonie was steady against the euro, with at 1.5110.

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