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Forex - USD/CAD slips lower in early trade

Published 04/01/2015, 09:31 AM
Greenback falls against loonie as ADP report weighs

Investing.com - The U.S. dollar slipped lower against its Canadian counterpart on Wednesday, after data showed that U.S. non-farm private employment rose less than expected in March and as markets awaited an upcoming report on U.S. manufacturing activity.

USD/CAD hit 1.2636 during early U.S. trade, the pair's lowest since March 30; the pair subsequently consolidated at 1.2651, shedding 0.25%.

The pair was likely to find support at 1.2462, the low of March 27 and resistance at 1.2784, Tuesday's high.

The greenback weakened broadly after payroll processing firm ADP reported that non-farm private employment rose by 189,000 last month, below expectations for an increase of 225,000. The economy created 214,000 jobs in February, whose figure was upwardly revised from a previously reported 212,000.

Investors turned their attention to the upcoming U.S. jobs report due out on Friday, which was expected to support expectations for higher interest rates.

The loonie was lower against the euro, with EUR/CAD adding 0.14% to 1.3631.

The single currency found support after data showing manufacturing activity across the euro zone grew at the fastest pace since last May in March indicated that the recovery in the region is continuing to gain traction.

Research firm Markit said the euro zone manufacturing purchasing managers' index rose to a 10-month high of 52.2, higher than the preliminary reading of 51.9.

Later in the day, the Institute of Supply Management was to release data on manufacturing activity.

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