Swing Trades: EUR/USD, USD/CAD

EUR/USD: ADP Non-Farm Employment Change

The Greenback fell modestly against the Euro on the ADP report revealing some weakening in the employment change in November. The EUR/USD lost 5 base points to return ito 1.1810 area and declined further to be seen trading below the 1.1800 area, as the next release was not strong enough to bring the pair back to stronger levels.

The US private sector created 190K jobs in November, down strongly from the prior month, but in line with projections, the ADP report indicated, ahead of more comprehensive the US Labour Departments figures to be issued on Friday. Meanwhile, another data showed the revision of the US unit labour costs, which was at an annualised 0.2% rate in the Q3, compared to the initially reported 0.5% rise.

EURUSD

 

USD/CAD: Bank of Canada Interest Rate Decision

The Canadian Dollar marked a solid depreciation against the US Dollar, as the country’s Central Bank announced its interest rate decision. The USD/CAD currency pair added almost 100 base points in total, trying to offset the losses made during the last week.

The Bank of Canada kept ist cautious mode over the next rate increase, even in the presence of the first signs of healthy recovery. The Bank’s polycimakers led by the Governor Stephen Poloz left the key interest rates unchanged at 1% on Wednesday, in line with expectations. The BoC is set to remain dovish, evaluating the economy’s sensitivity to higher interest rates, assesing the economic capacity and the growth trends of both wages and inflation.

USDCAD

 

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