CAD Firms as Oil Rebounds, USD Softens on Weaker ADP Data
The Canadian Dollar has firmed up as oil prices rebounded and the US Dollar softened on weaker ADP data. USD/CAD is trading around 1.4040, down 0.14% on the day.
Oil prices have received support after Yemen's Houthis claimed responsibility for an attack on a Saudi vessel in the Red Sea, temporarily raising concerns over global energy supplies.
However, hopes of a diplomatic breakthrough in the Middle East are limiting the upside in oil prices. The US, Iran, and Oman are close to reaching an interim agreement to reopen the Strait of Hormuz, which handles nearly 20% of the world's energy supply.
The US Dollar remains pressured by softer economic data, including the ADP Employment Change report showing a 44K increase in private payrolls in July, well below the market expectation of 70K.