Dollar Strength Tested by ADP Figures and BoC Decision

The US dollar is maintaining its upward momentum after recent weakness, and investors are looking to key events for direction. The preliminary ADP employment figures for the US are due today, with forecasts indicating a 48K job increase in the private sector.

A stronger-than-expected reading could lead to increased dollar volatility and a reevaluation of Federal Reserve policy expectations.

Meanwhile, tensions surrounding Iran continue to support demand for safe-haven assets, potentially limiting USD/JPY upside. The Bank of Canada's interest-rate decision is also on the horizon, with no expected changes in the policy rate but potential shifts in tone possibly influencing the Canadian dollar.

The US employment data and BoC statement will be crucial in determining further gains for both pairs. A dovish tone from the BoC could add pressure to the Canadian dollar, while stronger-than-expected US figures may limit the dollar's recovery.