Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Canadian Dollar Gives up Gain, USD Rallies as Rate-Hike Bets Jump After ADP Data

Forex Oct 05, 2022 13:23
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.
 
USD/CAD
0.00%
Add to/Remove from a Portfolio
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Ketki Saxena 

Investing.com -- The Canadian dollar weakened against its US counterpart today after a short-lived rally, tracking risk-off sentiment along with North American equities, which reversed into the red after two days of solid gains. 

The U.S. dollar meanwhile was boosted by a sharp rise in US 10-year Treasury yields as traders reassessed their bets on how aggressively the Federal Reserve will raise rates after robust employment numbers. 

At 1:20 p.m ET, the USD/CAD pair was trading at C$ 1.3632 to a US dollar, up 0.90% in the day's trading and with the day's range of 1.3504 - 1.3696.

The dollar gained broadly following U.S. ADP (NASDAQ:ADP) numbers, which showed an increase in private employer hiring in September,  and as the employment component of the ISM's Services PMI increased. Following the data, the probability of a 75 basis points rate hike in November climbed above 70% as investors expect the Fed will stay hawkish. 

Additionally Senior Federal Reserve officials, including San Francisco Fed  Mary Daly and Philip Jefferson, a governor on the Fed’s board, played down suggestions of a dovish 'pivot'. 

The Canadian dollar gained some support from news confirming the OPEC+ decision to lower the group's output by 2 million barrels per day, despite pressure from the United States and others to pump more oil. OPEC+ is seeking to support oil prices, which have fallen to around $90 from $120 three months ago. Crude gained a further boost from the EIA’s reporting a larger-than-expected decline in US crude oil stocks in the week ending September 30.

The investor will likely take direction next from the Bank of Canada Governor Tiff Macklem’s speech tomorrow, and Friday’s jobs reports from both the US and Canada.  

Canadian Dollar Gives up Gain, USD Rallies as Rate-Hike Bets Jump After ADP Data
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email