USD/CAD: Canadian Dollar Pares Gains Against the US Dollar on Lower Oil Prices and Strong US ADP Labour Report

The US dollar continued to climb higher against the Canadian dollar with the opening of the New York session, supported by a deteriorated risk sentiment, tensions in the Middle East, and better-than-expected ADP non-farm employment numbers for December.

Iranian military forces fired a dozen missiles at US bases in Iraq early Wednesday in retaliation for a US drone attack that killed Qassem Suleimani, a top-ranked Iranian general. Nevertheless, despite elevated tensions in the region, the possibility of an escalation seems limited since there were no major casualties of the Iranian attack.

The ADP non-farm employment report showed that private-sector employment rose by 202.000 jobs in December, beating forecasts of a 160.000 change in jobs. Companies of all sizes created jobs in December, led predominantly by midsized companies. The service sector also posted the largest gains in jobs in the last eight months, according to the report.

Still, the ADP report represents only an estimation of the number of new jobs created. The actual non-farm employment change, released by the Bureau of Labor Statistics, is scheduled for release on Friday with market expectations set for a 150.000 rise.

While there are no important market reports coming from Canada today, lower oil prices for the third straight day started to weigh on the Canadian dollar which traded at 1.3014 against the greenback, as of 2:00 p.m. London time.

Charts show a potential resistance zone around the mid-1.30s, formed by the October 29 low. The trend in the pair remains to the downside with the December 31 low of 1.2951 acting as an important support level. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.