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USD/CAD TUMBLES BELOW 1.3650 ON WEAK US PRIVATE LABOR DEMAND AND SERVICES PMI

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  • USD/CAD declines to near 1.3620 as the US Dollar weakens after poor US data.
  • US private labor demand remained slowed and the Services PMI contracted in June.
  • Investors await the US/Canada official Employment data for June.

The USD/CAD pair falls sharply to near 1.3650 in Wednesday’s American session. The Loonie asset weakens as the US Dollar (USD) faces an intense sell-off after the United States (US) ADP Employment report showed that labor growth in the private sector surprisingly slowed in June and the ISM Services PMI report showed that activities in the service sector contracted significantly.

According to the report, private employers hired 150K job-seekers, missed estimates of 160K and the prior release of 157K, upwardly revised from 152K. This has deepened uncertainty over the labor market outlook. However, investors await the US Nonfarm Payrolls (NFP) report for June, which will be published on Friday. The US NFP report will provide clarity about the current status of the labor market.


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