• USD/CAD slipped lower on Wednesday as investors reacted to a combination of softer-than-expected U.S. economic data and the Bank of Canada’s latest interest rate decision.
• The Bank of Canada kept its benchmark rate at 2.75%, citing uncertainty over U.S. trade policy, but signaled a possible rate cut if tariffs further strain the economy.
• U.S. private payrolls rose by just 37,000 in May, well below expectations, following a downwardly revised gain of 60,000 in April, according to the ADP report released Wednesday.
• The U.S. services sector shrank in May for the first time in nearly a year, with the ISM non-manufacturing PMI falling to 49.9 from 51.6 in April — its lowest level since June 2024.
• At GMT 15:36, the dollar was down 0.29% to 1.3681 against the Canadian dollar.
• Immediate resistance is located at 1.3738(Daily high), any close above will push the pair towards 1.3810(38.2%fib).
• Support is seen at 1.3667(23.6%fib) and break below could take the pair towards 1.3600(Lower BB).
Recommendation: Good to sell around 1.3690, with stop loss of 1.3750 and target price of 1.3590
