USD/CAD surrenders a major part of its intraday gains, retreats to mid-1.3400s – by hareshmenghani USDCAD Fed Employment Bonds Currencies
ssive day on Wednesday. The intraday positive move, however, runs out of steam ahead of the 100-hour Simple Moving Average , forcing spot prices to retreat below mid-1.3400s during the early North American session.struggle to capitalize on this week's big bullish gap opening and the subsequent move up to the highest level since January 17 amid worries that looming recession risks will dent fuel demand.
Growing acceptance that the Federal Reserve is nearly done with its tightening cycle keeps a lid on any meaningful rally in the US bond yields and holds back the USD bulls from placing aggressive bets. In fact, the markets are now pricing in an even chance of a 25 bps lift-off at the May FOMC meeting and the possibility of rate cuts by end-December. The bets were reaffirmed by the incoming softer US macro releases, including the US ADP report on Wednesday.
According to the data published by Automatic Data Processing, the US private-sector employers added 145K jobs in March as compared to the 200K expected and the previous month's upwardly revised reading of 261 K. This comes on the back of the JOLTS report released on Tuesday, which indicated that job openings in February dropped to the lowest in nearly two years. This is seen as a sign that the Fed's efforts to slow the labor market may be having some impact.
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