02/07/2024
USD/CAD climbed to 1.3735 in early Asian trading on Tuesday. The rise was driven by a stronger US Dollar and higher US Treasury yields. However, the Canadian Dollar's gains were limited as oil price concerns supported the commodity-linked currency. The US ISM Manufacturing PMI indicated ongoing contraction in June, influencing market sentiment. Federal Reserve Chairman Jerome Powell's upcoming speech is awaited for further market direction, amid Fed officials' cautious stance supporting the USD. Despite Canada's robust inflation data, doubts about rate cuts from the Bank of Canada persist, with crude oil price dynamics likely to influence the CAD given its status as a major exporter.
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