USD/CAD Daily Fundamental Analysis for August 04, 2011

By FXEmpire.com

The USD/CAD pair retreated earlier on Wednesday after the ADP employment report showed U.S. private employers added more jobs than expected in July, where the ADP employment report showed 114,000 jobs were added, better than median estimates of 100,000 added jobs, which eased some of the concerns over the health of the U.S. labor market.

Nonetheless, the USD/CAD pair erased some of its losses after the ISM services index was released, where the ISM services index showed activities eased in July to 52.7 below expectations of 53.5, which spread further concerns over the outlook of the U.S. economy, especially as the ISM manufacturing index for the same month also showed easing activities in July.

The focus in markets will now turn to the outlook for growth, as recent signs suggest economic growth is slowing in both the United States and Canada, while traders will be eyeing data from the U.S. labor market, as the infamous jobs report is due on Friday, and traders will be eyeing the recent developments in the U.S. labor market, and if the data proves disappointing, we should expect the USD to gain more momentum and rise against the CAD.

Thursday August 04:

At 12:30 GMT we have the weekly jobless claims, which are expected to rise to 405,000, where last week jobless claims fell to 398,000, which marked the lowest since early April.