USD/CAD slips to fresh monthly lows after FOMC

The minutes from the May (2nd & 3rd) Federal Reserve’s monetary policy put the greenback under selling pressure, pushing the USD/CAD to its lowest level since April 24 at 1.3418. As of writing, the pair was trading at 1.3424, losing 90 pips, or 0.66%, on the day.

The minutes showed that a few of the Fed officials raised concerns over the slowdown of the progress of the inflation towards the bank's 2% target. Most members also reiterated that the uncertainty surrounding the Trump administration's economic proposals remained. Overall though, the committee's assessment of the economy changed little since the March policy meeting, suggesting a neutral stance. Nevertheless, the US Dollar Index dropped to 97 area, erasing its daily gains, and is now at 97.15, down 0.12%.

• FOMC minutes: Fed policymakers agreed that details of balance sheet plan should be announced soon

On the other hand, ahead of tomorrow's important OPEC meeting, crude oil is having a difficult time adding to its recent gains, with the barrel of WTI trading at $51.30, losing 17 cents on the day, limiting the gains of the commodity-linked loonie. 

• Russian EnergyMin Novak: Non-OPEC committee recommends to keep current output quotas

Technical outlook

The pair could encounter the immediate support at 1.3400 (psychological level) followed by 1.3320 (Apr. 10 low) and 1.3240 (Apr. 12 low). To the upside, resistances align at 1.3500 (psychological level), 1.3540 (daily high) and 1.3630 (20-DMA).