The CAD edged lower against its broadly stronger USD on Wednesday, paring some of the gains that followed a deal over the weekend to revamp the NAFTA trade pact.

The decline for the loonie came as U.S. data showing that private employers added 230k jobs in September pushed yields on short-dated U.S. Treasury notes to their highest in a decade and boosted the greenback against a basket of major currencies. Still, the currency performed better than all the other G10 currencies with the exception of sterling.

On Monday, the loonie touched its strongest level in more than four months at 1.2783 after a deal to salvage the trilateral NAFTA reduced uncertainty for Canada's trade-dependent economy.

What’s next for the USD/CAD? One potential catalyst for the currency could be economic data. Canada's jobs data for September and August trade data are due on Friday and could help guide expectations for another Bank of Canada interest rate hike as soon this month.

The EUR/USD is being hurt by uncertainty surrounding Italy's debt, fiscal plans and future ties with Europe, which have unnerved markets and exacerbated tensions with other eurozone leaders.

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