CANADIAN DOLLAR FINDS ROOM UP TOP AGAINST FLOUNDERING GREENBACK AFTER US ISM PMI MISS

• US data prints miss the mark, ISM PMI and Factory Orders flub forecasts.
• Canada readies for another BoC rate call on Wednesday.
• CAD is softer on the day, only finding gains against USD.

The Canadian Dollar (CAD) climbed against the US Dollar (USD) on Tuesday after the US ISM Services Purchasing Managers Index (PMI) and US Factory Orders both missed forecasts. Market hopes for an accelerated path toward Federal Reserve (Fed) rate cuts are pinning back into the high end as US economic figures tease a steepening economic contraction in the US.

The Bank of Canada (BoC) makes another appearance on Wednesday to deliver what is broadly expected to be another rate hold at 5.0%. ADP Employment Change for the US will dwarf moves from the BoC’s Governor Tiff Macklem, and Fed Chairman Jerome Powell will be making his first of two appearances to testify about the Fed’s Semi-Annual Monetary Policy Report before the US Congress’ House Financial Services Committee.