Kenny Fisher | Jul 24, 2020 12:02
It has been a sleepy Friday for USD/CAD. Currently, the pair is trading at 1.3425, down 0.13% on the day. There are no Canadian events on the schedule.
U.S. Manufacturing PMI eyed
U.S. manufacturing has been hit hard in the wake of the COVID-19 pandemic, as the economic activity has slowed down considerably. The US Manufacturing PMI has been in contraction territory for the past four months, with readings below the 50-level. Still, the index has been moving upwards and showed strong improvement in June, climbing from 39.8 to 49.6. Will the index push past the 50-level in today’s release? Analysts think so, with an estimate of 52.0. A reading above 50 will raise hopes that the nascent economic recovery is gaining ground.
Investors have not been attracted to the U.S. dollar, despite its safe-haven status in times of trouble. The Canadian dollar has benefited, gaining 1.1% this week. We’re unlikely to see any significant movement before the weekend, with the Canadian dollar currently enjoying its strongest weekly gains since the first week of June.
USD/CAD Technical
USD/CAD posted gains in the Asian session but has retreated in European trade.
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