The US Dollar posts minor losses, supported by strong US Jobs and manufacturing data.
The low Crude prices are putting pressure on the Canadian Dollar.
Later today, the US ADP report is likely to determine the US Dollar's near-term direction.
The US Dollar maintains a moderately positive tone against the Canadian Dollar on Wednesday, favoured by strong US job openings and manufacturing data seen on Tuesday, with all eyes on the US ADP employment report, due later on Wednesday.
The USD/CAD bounced up from two-week lows right below 1.3600 following US data and Powell’s cautious comments at an ECB forum in Portugal, and is consolidating above 1.3640, favoured by a mild appetite for risk during Wednesday’s European session.
US data released on Tuesday showed a higher.-htan-expected increase on job openings in May, and manufacturing activity improving beyond expectations, with production expanding for the first time in four months and price inflation accelerating.
While macroeconomic data has been USD supportive this week, the Canadian Dollar remains weighed by lower prices for Oil, which is Canada´s main export. The US benchmark WTI remains pinned near $65.00 amid lower geopolitical tensions and with traders bracing for further supply hikes at this week’s OPEC+ meeting.
The highlight today is the US ADP Employment Change report, which is expected to follow the path of Tuesday’s JOLTS reading and show a significant increase in employment creation in June. Another upbeat release will improve investors’ expectations for Friday’s Nonfarm Payrolls Report might give some additional boost to the US Dollar.
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