Investing.com - The U.S. dollar was higher against its Canadian counterpart on Wednesday, as upbeat U.S. employment and trade data lent broad support to the greenback, while a disappointing report on Canada's trade balance weighed on the local currency.
USD/CAD hit 1.2509 during U.S. morning trade, the session high; the pair subsequently consolidated at 1.2472, advancing 0.56%.
The pair was likely to find support at 1.2362, Tuesday's low and resistance at 1.2563, the high of June 1 and a six-wek high.
The greenback strengthened after payroll processing firm ADP reported on Wednesday that U.S. non-farm private employment rose by 201,000 last month, just above expectations for an increase of 200,000.
The economy created 165,000 jobs in April, whose figure was downwardly revised from a previously reported increase of 169,000.
Separately, the U.S. Bureau of Economic Analysis said that the trade deficit narrowed to $40.88 billion in April from a deficit of $50.57 billion in March, whose figure was revised from a previously reported deficit of $51.37 billion.
Analysts had expected the U.S. trade deficit to narrow to $44.0 billion in April.
In Canada, data showed that Canada's trade deficit narrowed less than expected to C$2.97 billion in April from a revised deficit of C$3.85 billion the previous month.
The loonie was lower against the euro, with EUR/CAD climbing 0.97% to 1.3964.
The single currency found support after European Central Bank President Mario Draghi said the bank's asset purchase programs will continue until the end of September 2016 and "until the path of inflation is consistent with our aim of achieving inflation rates below, but close to, 2%."
Speaking at the central bank's monthly press conference, Draghi also said that the ECB's asset-buying program is contributing to economic growth and that the full implementation of its monetary policy measures will "provide the necessary support to the euro area economy."
The comments came after the ECB held its benchmark interest rate at a record-low 0.05%, in line with market expectations.
Data earlier showed that euro zone retail sales rebounded 0.7% in April and were up 2.2% from a year earlier.
Another report showed that the region’s unemployment rate fell to 11.1% in April from 11.2% in March.
The euro also found support earlier amid hopes that Greece will soon reach an agreement with its international lenders on a cash-for-reforms deal.