USD/CAD rebounds from 1.2355 as the US dollar strengthens
- Loonie outperforms during the American session.
- USD/CAD hits fresh daily lows even as the DXY rises to test monthly highs.
The USD/CAD weakened after the release of US and Canadian economic data. Recently it bottomed at 1.2354, a fresh daily low. Recently rebounded to 1.2390 after the dollar climbed to fresh highs across the board, and it is hovering around 1.2380, modestly lower for the day.
Loonie strengthens after Canadian data
The loonie is outperforming in the market on Wednesday and is among the few currencies to rise versus the greenback. The DXY is up by 0.25%, trading above 92.20. At the same time, US yields are falling sharply.
Economic data from Canada contribute to the strength of the CAD. Real GDP growth in April came in above expectations, and the inflation indicators released on Wednesday showed acceleration from the previous months.
In the US, the ADP employment report showed an increase in private payroll of 692,000, above the 600,000 expected. The Chicago PMI dropped more than expected to 66.1. On Thursday, PMIs are due, and also jobless claims data. The key report will be Friday’s NFP.