The Canadian Dollar (CAD) saw a recovery on Tuesday despite a slight miss in the Canadian Purchasing Managers Index (PMI) figures. Market sentiment is picking up and the CAD is gaining ground. The S&P Global Manufacturing PMI figures in June remained flat, but the US JOLTS Job Openings in May rose higher, easing investor concerns. This has led to the CAD traders shrugging off the PMI miss and boosting the Canadian Dollar into a recovery mode.
In terms of daily market movers, the Canadian Dollar has managed to regain lost ground despite the PMI miss. The Canadian Manufacturing PMI held flat at 49.3 in June, missing the forecast increase to 50.2. However, as broad-market sentiment improves, CAD traders have shrugged off the data miss and helped bolster the Canadian Dollar. Additionally, the US JOLTS Job Openings in May rose to 8.14 million, exceeding the forecast of a flat hold at 7.91 million. Federal Reserve officials also expressed a dovish outlook on Tuesday, with hopeful expectations for inflation. Wednesday’s US ADP Employment Change is expected to provide a rough preview of Friday’s US Nonfarm Payrolls (NFP) labor data dump.
The Canadian Dollar has shown strength against major currencies today, particularly the Swiss Franc. The table shows the percentage change of the CAD against listed major currencies, with the CAD being strongest against the Swiss Franc compared to other currencies. The heat map displays the percentage changes of major currencies against each other, allowing for an easy comparison of currency movements. This indicates that the CAD is performing well relative to other major currencies in the market.
In terms of technical outlook, the Canadian Dollar rebounded on Tuesday, climbing against the US Dollar, Euro, and Japanese Yen. The CAD was the best-performing currency among major currencies for the day. The USD/CAD pair has fallen below the 1.3700 level after reaching a near-term peak of 1.3755. The intraday price action remains volatile, with daily candlesticks hovering around the 50-day Exponential Moving Average (EMA) at 1.3680. While USD/CAD is trading above the 200-day EMA at 1.3588, bullish momentum has not seen fresh gains since peaking in April.
In economic indicators, the JOLTS Job Openings survey by the US Bureau of Labor Statistics helps measure job vacancies. This data is collected monthly from employers across various industries to provide insights into the job market. Overall, despite the PMI miss, the Canadian Dollar has shown resilience and strength in the market, with traders focusing on broader market sentiment and upcoming labor data releases.
