USD/CAD holds steady above 1.3770, Carney announces support measures for lumber industry

• USD/CAD trades flat around 1.3770 in Wednesday's early Asian session. 
• Canada's trade deficit widened to C$5.85 billion in June. 
• The US ISM Services PMI eased to 50.1 in July, weaker than expected. 

The USD/CAD pair flat lines near 1.3770 during the early Asian session on Wednesday. The Canadian Dollar (CAD) trades unchanged against the US Dollar as crude oil prices decline, and data show a widening of the Canadian trade deficit, which was close to expectations. The Federal Reserve (Fed) officials are set to speak later on Wednesday, including Susan Collins, Lisa Cook and Mary Daly. 

Data released by Statistics Canada on Tuesday showed that the country's International Trade Deficit widened in June to C$5.86 billion, compared to C$5.9 billion in May. Analysts had predicted the deficit would decrease to C$5.8 billion. 

Canadian Prime Minister Mark Carney stated on Tuesday that the government would extend favorable loan guarantees to the Canadian softwood lumber industry, which is dealing with tariff impacts that are dragging down exports to the US.

Meanwhile, crude oil prices fall on rising OPEC+ supply and worries of weaker global demand, which might weigh on the commodity-linked Loonie. It's worth noting that Canada is the largest oil exporter to the US, and lower crude oil prices tend to have a negative impact on the CAD value.

On the other hand, the rising expectation of Fed rate cuts this year and weaker-than-expected US economic data might cap the upside for the pair in the near term. The US Services Purchasing Managers Index (PMI) declined to 50.1 in July, down from 50.8, according to the Institute for Supply Management (ISM) on Tuesday. This figure came in worse than the estimations of 51.5.

Financial markets have priced in nearly an 84% odds that the Fed will reduce rates by 25 basis points (bps) in the September meeting, according to the CME FedWatch tool.