During the American session, the Loonie outperforms.
Even as the DXY rises to test monthly highs, the USD/CAD drops to new daily lows.
Following the announcement of US and Canadian GDP data, the USD/CAD fell. It recently reached a new daily low of 1.2354. After the dollar rose to new highs across the board, it recently rebounded to 1.2390, and it is now sitting around 1.2380, somewhat down for the day.
On Wednesday, the loonie is beating the market and is one of the few currencies to gain ground against the dollar. The DXY is currently trading at 92.20, up 0.25 percent. At the same time, US bond yields are plummeting.
The strength of the CAD is aided by Canadian economic data. Inflation data presented on Wednesday showed an uptick from prior months, and real GDP growth in April exceeded expectations.
In the United States, the ADP employment report revealed a 692,000 gain in private payroll, which was more than the predicted 600,000 increase. The Chicago PMI fell to 66.1, which was worse than projected. PMIs and unemployment claims statistics are coming on Thursday. The NFP report on Friday will be crucial./n
