Mixed signals from U.S. How was the impact of positive U.S. employment data and negative U.S. rate hike expectation?
This article is originally referred from Traders Trust Daily Afternoon Report.
The U.S. dollar pared losses against its Canadian counterpart on Wednesday, after the release of upbeat U.S. employment data, although falling expectations for a U.S. rate hike this year continued to weigh and higher oil prices boosted the Canadian currency.
USD/CAD eased off 1.3081, the session low, to hit 1.3100 during early U.S. trade, steady for the day.
The pair was likely to find support at 1.3000, Tuesday’s low and resistance at 1.3193, the high of July 28.
Payroll processor ADP said the U.S. private sector added 179,000 jobs last month, surpassing expectations for an increase of 170,000.
The economy created 176,000 jobs in June, whose figure was revised from a previously reported increase of 172,000, the report said.
While not viewed as a reliable guide for the government jobs report due on Friday, August 5, it does give guidance on private-sector hiring.
But the greenback remained under pressure amid diminished expectations for another rate hike by the Federal Reserve this year after last week’s surprisingly weak data on U.S. second quarter growth.
Earlier in the week, Dallas Fed head Robert Kaplan urged caution on raising U.S. interest rates again amid a raft of risks facing the global economy.
Meanwhile, the commodity-related Canadian dollar was boosted as oil prices moved higher on Wednesday ahead of the weekly U.S. supply data.
The loonie was higher against the euro, with EUR/CAD sliding 0.43% to 1.4652.
Original Source: Traders Trust Daily Afternoon Report