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Forex - USD/CAD edges higher after ADP data

Published 04/02/2014, 09:31 AM
USD/CAD
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EUR/CAD
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Investing.com - The U.S. dollar edged higher against the Canadian dollar on Wednesday after a report showed that the U.S. private sector added slightly fewer jobs than expected in March.

USD/CAD touched session lows of 1.1004 and was last trading at 1.1030, up 0.07% and holding above the three-week lows of 1.0999 struck last Friday.

The pair was likely to find support at 1.0999 and resistance at 1.1068, Tuesday’s high.

The pair continued to trade in a tight range after payroll processing firm ADP reported that the U.S. private sector added 191,000 jobs last month, slightly below expectations for jobs growth of 195,000.

February’s figure was revised up to a gain of 178,000 from a previously reported increase of 139,000.

While the report is not viewed as a reliable guide for the government jobs report due on Friday, it does give guidance on private-sector hiring.

The U.S. was to release data on factory orders later in the trading day.

Elsewhere, the loonie, as the Canadian dollar is also known, was steady against the euro, with EUR/CAD dipping 0.07% to 1.5195.

Sentiment on the single currency remained fragile ahead of Thursday’s European Central Bank meeting, amid growing concerns over the threat of deflation in the euro zone.

Data released on Wednesday showing that euro zone producer prices fell in February added to pressure on the ECB to implement fresh policy measures to stave off deflation.

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