Investing.com - The U.S. dollar rose to session highs against the Canadian dollar on Wednesday, recovering from six-month lows, after data showed that the U.S private sector added more jobs than expected in June.
USD/CAD was up 0.17% to 1.0649 following the release of the data, rebounding from session lows of 1.0625, the weakest since January 6
The pair was likely to find support at 1.0625 and resistance at 1.0677, Tuesday’s high.
The greenback was boosted after the latest ADP nonfarm payrolls report showed that the U.S private sector added 281,000 jobs last month, outstripping expectations for an increase of 200,000 and the highest since November 2012.
The upbeat data eased concerns over the outlook for the U.S. recovery after data last week showing a sharp economic contraction in the first quarter fuelled expectations that the Federal Reserve would keep rates on hold for an extended period.
Investors were turning their attention to a speech by Fed Chair Janet Yellen later in the day, ahead of Thursday’s closely watched nonfarm payrolls report. The report was being released one day ahead of schedule because of Friday’s Independence Day holiday.
The Canadian dollar has found support in recent weeks, as stronger than expected inflation data fuelled expectations that the Bank of Canada might raise interest rates sooner than thought.
Elsewhere, the loonie, as the Canadian dollar is also known, was close to its highest levels of the year against the euro, with EUR/CAD at 1.4534.
Sentiment on the single currency remained fragile amid concerns that the European Central Bank could voice concerns over the currency’s strength at its post-policy meeting press conference on Thursday, as fears over persistently low levels of inflation in the euro zone continued.
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