Shutterstock photo
Markets

Forex - USD/CAD eases up as crude oil pares gains in choppy trade

Shutterstock photo

Shutterstock photo

Forex Pros - The U.S. dollar was slightly higher against its Canadian counterpart on Wednesday, as crude oil, Canada's largest export, pared gains in volatile trade, following the release of disappointing U.S. private sector employment data.

USD/CAD rebounded from 0.9666, the daily low, to hit 0.9698 during early U.S. trade, gaining 0.14%.

The pair was likely to find support at 0.9554, Tuesday's low and resistance at 0.9770, Tuesday's high.

Earlier in the day, data showed that U.S. private sector employment growth slowed sharply in May as large companies cut jobs.

Payroll processing firm ADP said U.S. non-farm payrolls rose just 38K in May, on a seasonally adjusted basis, disappointing expectations for an increase of 178K.

The report said the slowdown, while disappointing, was not entirely surprising given weak growth in the U.S. economy so far this year. Real gross domestic product grew only 1.8% in the first quarter.

Following the data, crude oil for delivery in July eased up 0.12% on the New York Mercantile Exchange, to trade at USD102.74 a barrel, after pulling away from a three-week high of USD103.29.

Raw materials, including oil account for about half of Canada's export revenue.

The loonie was also lower against the euro, with EUR/CAD rising 0.31% to hit 1.3984.

Later Wednesday, the U.S. Institute of Supply Management was to publish data on manufacturing activity.

Forex News

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx

Latest Markets Videos