USD/CAD extends recovery from 9-month lows after Fed

USD/CAD extended its recovery from fresh yearly lows and set fresh daily highs following the Federal Reserve decision on monetary policy.

USD/CAD rose to a high of 1.2684 as the greenback strengthened broadly, extending a bounce from a 9-month low struck earlier at 1.2570. However, the pair lost altitude and it was last trading at 1.2618, still 0.12% above its opening price.

The Fed left the target range for the fed funds unchanged at 0.25%-0.50% as expected, but sounded slightly hawkish by removing reference to the global and financial developments posing risks to their outlook.