There are no Canadian events on the schedule and Canadian banks are closed for a holiday. Still, we could see some movement from USD/CAD in the North American session, as the US releases ISM Manufacturing PMI.
All eyes on ISM Manufacturing PMI
The US will release ISM Manufacturing PMI, a key gauge of the health of the manufacturing sector. The index jumped to 52.6 in June, up from 43.1, marking the first read in expansion territory in four months. The upswing is expected to continue, with a forecast of 53.6. The 50-level separates contraction from expansion. A strong release could put some wind into the sales of the US dollar and send USD/CAD higher.
Canada’s GDP beats estimate
Unlike the US, which releases GDP every quarter, Canada publishes GDP on a monthly basis. There was good news on Friday, as the May release showed that the economy grew 4.5%, beating the estimate of 3.5%. This follows declines of -7.2% and -11.6%. The Canadian dollar showed some gains on Friday, but couldn’t consolidate and was almost unchanged on Friday.
USD/CAD is currently trading at 1.34402, up 0.22% on the day. The pair moved higher late in the Asian session and has posted further gains in European trade
- 1.3447 is under pressure resistance. Above, we find resistance at 1.3478
- 1.3379 is providing support, followed by support at 1.3342
- USD/CAD is trading just below the 10-day MA. If this line breaks below the 10-day MA, it is a bearish sign for the pair