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USD/CAD steady as Canada Manufacturing PMI Rises

The week started slowly for USD/CAD, as Canadian banks were closed for a holiday. Tuesday has started in the same fashion, with limited movement from USD/CAD.

 

Canada Manufacturing PMI shows expansion

Canada’s manufacturing sector has been hit hard by the Covid-19 pandemic, as the lockdown has resulted in decreased factory production. Manufacturing PMI hasn’t recorded a reading in expansion territory since April, but the rate contraction has slowed. The June release improved to 47.8, up from 40.6. The upswing continued in July, as the PMI rose to 52.9. The 50-mark separates contraction from expansion.

 

US dollar improves on ISM Manufacturing PMI

The US dollar received a much-needed boost against the majors after a strong showing from ISM Manufacturing PMI on Monday. The PMI accelerated for a third successive month, rising from 52.6 to 54.2. This marked the PMI’s strongest read since March 2019. As well, the Markit Manufacturing PMI climbed to 50.9 in July, its first read in expansion territory since February.

 

USD/CAD Technical

 

USD/CAD is currently trading at 1.3416, up 0.17% on the day. The pair lost ground in the Asian session but reversed directions and posted considerable gains in European trade

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Kenny Fisher

Kenny Fisher [4]

Market Analyst at OANDA [5]
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.
Kenny Fisher

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