The U.S. dollar moved higher against its Canadian counterpart on Wednesday, boosted by strong U.S. economic reports, while lower oil prices dampened demand for the commodity-related Canadian currency.
The U.S. dollar found support after data showed that the U.S. private sector added more jobs than expected in July.
In addition, a preliminary report showed that U.S. economic growth for the second quarter was revised even higher expected.
The greenback had come under broad selling pressure following North Korea’s missile launch over on Monday.
But market sentiment improved as U.S. President Donald Trump’s reaction to the North Korean aggression was seen as more moderate than in the past. The U.S. President did warn that “all options are on the table” however.
Market participants were also monitoring developments in Texas, as flooding due to Tropical Storm Harvey has shut nearly a fifth of U.S. oil-refining capacity.
Oil prices were trading lower on Wednesday, as traders were eyeing the weekly report on U.S. crude inventories due later in the day.
In Canada, data earlier showed that the current account deficit widened to only C$16.3 billion in the second quarter from C$12.9 billion in the first quarter, whose figure was revised from a previously estimated deficit of C$14.1 billion.
Analysts had expected the current account deficit to widen to C$17.4 billion in the last quarter.