Daily Afternoon Report 04.10.2017

Daily Afternoon Report 04.10.2017

The U.S. dollar pared losses against its Canadian counterpart on Wednesday, helped by the release of strong U.S. employment data, although speculation over Federal Reserve Chair Janet Yellen’s replacement limited the greenback’s gains.

USDCAD was little changed at 1.2479, not far from the previous session’s one-month highs of 1.2538.

Payrolls processor ADP reported on Wednesday that the U.S. private sector added 135,000 jobs last month.

But sentiment on the greenback remained fragile amid speculation the next Fed head could be less hawkish than expected continued to weigh.

Fed Governor Jerome Powell and former governor Kevin Warsh were both interviewed at the White House last week to replace current Fed Chair Janet Yellen next February.

While the two men are seen as serious candidates, Powell is considered as more dovish than Warsh, who has criticised the Fed’s bond-buying program in the past.

The dollar strengthened earlier in the week on speculation that Warsh might be the leading candidate to replace Yellen.

The greenback has also been supported recently by hopes for U.S. tax reform after the Trump administration outlined plans for a sweeping overhaul of the U.S. tax code last week.

The loonie was steady against the euro, with EURCAD at 1.4672.