The post USD/CAD extends its recovery near 1.3500 as traders brace for US PMI data appeared on BitcoinEthereumNews.com.

USD/CAD trades in positive territory for the fifth consecutive day around 1.3500 in Tuesday’s early Asian session. Traders await the US August ISM Manufacturing PMI on Tuesday ahead of US employment data. The rebound of crude oil prices might support the CAD and cap the pair’s upside. The USD/CAD pair trades on a stronger note near 1.3500 during the early Asian session on Tuesday. The USD Index (DXY), which measures the USD’s value against a basket of six major currencies, consolidated around 101.60 as traders prefer to wait on the sidelines ahead of the key labor data this week. On Tuesday, the US ISM Manufacturing PMI will be in the spotlight. The Greenback remains on the defensive, marking its biggest monthly drop this year in August amid the expectation that the US Federal Reserve (Fed) will cut interest rates in September. “The dollar has been under pressure and it will remain under pressure over the remainder of this year,” said Guy Miller, chief market strategist, Zurich Insurance Group. The US ISM Manufacturing PMI for August, which is due on Tuesday, is expected to improve to 47.5 in August from 46.8 in July. If the reading shows a stronger-than-expected outcome, this could provide some support to the US Dollar (USD) against the Canadian Dollar (CAD). The attention will shift to the US August Nonfarm Payrolls (NFP) on Friday, which is estimated to rise to 165K in August from 114K in July. This report could provide some hints about the size and pace of the US interest rate cut by the Fed this year. Meanwhile, supply concerns surrounding Libya’s oil output could underpin the crude oil prices and boost the commodity-linked Loonie. It’s worth noting that Canada is the largest Oil exporter to the United States (US), and higher crude oil prices tend to…

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Filed under: News - @ September 3, 2024 12:23 am