USD/CAD Drops Following Slew of Economic Data

The U.S. Dollar (USD) dropped against its Canadian counterpart (CAD), sliding into the negative territory with the beginning of the American session, after moving earlier in a relatively tight range around its highest level in about two weeks near 1.24.

The greenback has declined across the board following the release of June’s Nonfarm Payrolls (NFP) report by the U.S. Bureau of Labor Statistics. Data showed that U.S. private payrolls increased by 850,000.

The USD/CAD pair is trading lower for the day by 0.80% at 1.2338, near its daily low of 1.2337, after going as high as 1.2450 earlier today.

It is worth noting that the pair finished Thursday at the level of 1.2437.

However, after recent surges, the USD came under selling pressures, as evident by the decline of the Dollar Index (DXY).

Moreover, the CAD remains supported by the upward trend in oil prices, amid anticipation for the OPEC+ output policy decision.

In addition, Canada’s manufacturing purchasing managers’ index (PMI) leveled down to 56.5 in June from 57 in May, according to IHS Markit.

The Canadian trade balance data also showed a CAD 1.4 billion deficit in May, with analysts now expecting a deficit in the coming months.

S1: 1.2326	R1: 1.2376
S2: 1.2309	R2: 1.2409
S3: 1.2276	R3: 1.2426