Traders await June Nonfarm Payrolls data for clues on Fed policy after weaker ADP and ISM prints weighed on the USD.
The USD/CAD pair retreated to around 1.4190 in European trading Thursday, erasing earlier gains as investors braced for the June Nonfarm Payrolls report. Caution prevailed after Wednesday’s ADP Employment Change missed forecasts, rising just 98,000 versus the 113,000 estimate, while May’s figure was revised down to 122,000.
Earlier data showed the ISM Manufacturing PMI slipping to 53.3, below the 54.0 consensus, reinforcing concerns over economic cooling. Fed Chair Kevin Warsh’s remarks at the ECB Forum were seen as less hawkish than expected, though he reiterated the Fed’s 2% inflation target and policy independence.
Downside for USD/CAD may be limited as falling oil prices pressure the CAD. Global crude benchmarks slid sharply on easing supply fears, driven by a rebound in maritime shipping traffic.