A combination of factors dragged USD/CAD lower

The USD/CAD pair remained depressed through the early European session and dropped to the lowest level since February 2018, around mid-1.2200s in the last hour. The pair failed to capitalize on its early uptick, instead met with some fresh supply near the 1.2285-90 region and turned lower for the second consecutive session on Thursday. The downtick was sponsored by the emergence of some fresh selling around the US dollar, weighed down by Wednesday's unimpressive US macro releases.

The ADP report showed that the private-sector employers in the US added 742K jobs in April. The reading, however, was well below consensus estimates. Adding to this, the US ISM Services PMI also fell short of market expectations and dropped to 62.7 in April from a record high level of 63.7 touched in the previous month.