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  • US Dollar Index posts modest gains near 99.30 in the early American session.
  • West Texas Intermediate (WTI) stays calm near $54 handle on Wednesday.
  • Private sector employment in the United States rose less than expected in September.

The USD/CAD pair spiked higher toward the 1.33 handle on Tuesday after the data published by Statistics Canada showed that the Canadian economy stayed flat in July.

The pair, however, reversed its direction during the American trading hours and erased a large part of its daily gains as the USD met a strong selling pressure following the disappointing Manufacturing Purchasing Managers’ Index (PMI)  data from the United States that revived concerns over a possible recession.  

After starting the day at 1.3218 on Wednesday, the pair started to recover Tuesday losses and was last seen trading at 1.3243, adding  0.21% on a daily basis.  

USD recovers modestly despite uninspiring  data

The only data from the United States revealed that the private sector employment increased by 135,000 and fell short of the market expectation of 140,000. Nevertheless, the US Dollar Index stays in the positive territory near 99.30 to help the pair cling to its daily gains.

Meanwhile, ahead of the Energy Information Administration’s (EIA) weekly crude oil stock report, the barrel of West Texas Intermediate is moving sideways near the $54 handle, making it difficult for the commodity-sensitive Loonie to stay resilient against the USD.

There won’t be any macroeconomic data releases in the remainder of the day. On Thursday, participants will be paying close attention to the IHS Markit’s and the Institue for Supply Management’s (ISM) service sector PMI figures ahead of Friday’s nonfarm payroll report from the US.

Technical levels to consider