Forexpros - The U.S. dollar extended gains against the Canadian dollar
on Wednesday, climbing to a one-month high, as uncertainty over a
bailout for Spain and a string of discouraging service sector data
underpinned demand for the safe haven greenback.
USD/CAD hit 0.9884 during early U.S. trade, the pair’s highest since September 6; the pair subsequently consolidated at 0.9876, gaining 0.36%.
The pair was likely to find support at 0.9810, Tuesday’s low and resistance at 0.9913, the high of September 6.
The dollar found support as uncertainty over the timing of a Spanish bailout persisted after the country’s prime minister said Tuesday that a request for aid was not imminent, despite ongoing speculation that Madrid is moving closer to requesting assistance.
Market sentiment remained on the back foot after a string of weak service sector data earlier in the session fuelled concerns over the outlook for the global economic recovery.
The final euro zone services PMI came in at 46.1 in September, well below the 50 level which separates contraction from expansion.
In the U.K., data showed that service sector shed jobs for the first time in 10 months in September as growth slowed.
A separate report showed that growth in China’s service sector moderated in September, underlining concerns over a slowdown in the world’s second largest economy.
Also Wednesday, payroll processing firm ADP said the U.S. private sector added a seasonally adjusted 162,000 jobs in September, surpassing expectations for an increase of 143,000.
The previous month’s figure was revised down to a gain of 189,000 from a previously reported increase of 201,000.
The loonie, as the Canadian dollar is also known, was down against the euro, with EUR/CAD rising 0.23% to 1.2742.
Later in the day, the Institute of Supply Management was to produce data on U.S. service sector activity.
USD/CAD hit 0.9884 during early U.S. trade, the pair’s highest since September 6; the pair subsequently consolidated at 0.9876, gaining 0.36%.
The pair was likely to find support at 0.9810, Tuesday’s low and resistance at 0.9913, the high of September 6.
The dollar found support as uncertainty over the timing of a Spanish bailout persisted after the country’s prime minister said Tuesday that a request for aid was not imminent, despite ongoing speculation that Madrid is moving closer to requesting assistance.
Market sentiment remained on the back foot after a string of weak service sector data earlier in the session fuelled concerns over the outlook for the global economic recovery.
The final euro zone services PMI came in at 46.1 in September, well below the 50 level which separates contraction from expansion.
In the U.K., data showed that service sector shed jobs for the first time in 10 months in September as growth slowed.
A separate report showed that growth in China’s service sector moderated in September, underlining concerns over a slowdown in the world’s second largest economy.
Also Wednesday, payroll processing firm ADP said the U.S. private sector added a seasonally adjusted 162,000 jobs in September, surpassing expectations for an increase of 143,000.
The previous month’s figure was revised down to a gain of 189,000 from a previously reported increase of 201,000.
The loonie, as the Canadian dollar is also known, was down against the euro, with EUR/CAD rising 0.23% to 1.2742.
Later in the day, the Institute of Supply Management was to produce data on U.S. service sector activity.
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