The Canadian Dollar struggles to hold flat against the Greenback after initial slide.
Canada is headed for an uncertain growth patch as forecasts get revised lower.
Mixed US PMIs also complicate the picture as the rest of the week looms large.
The Canadian Dollar (CAD) briefly slipped to a 14-week low against the Greenback after the Bank of Canada (BoC) cut rates by another 25 basis points, as markets broadly expected. Further downside revisions to the BoC’s Canadian growth forecasts hobbled the Canadian Dollar, and the USD/CAD pair is posed for a second straight week of gains.
Canada has delivered another rate cut, in-line with the BoC’s own promises of “a series of cuts” in the second half of 2024, but CAD traders are having a difficult time shrugging off steep downside adjustments to Canadian Gross Domestic Product (GDP) growth forecasts as well as a sharp Q1 revision. On the US side of things, US Purchasing Managers Index (PMI) figures came in mixed, with Manufacturing activity contracting and Services unexpectedly expanding to its highest level since April of 2022. Key US data will continue through the week, with US GDP on the docket for Thursday and US Personal Consumption Expenditure Price Index (PCE) inflation slated for Friday.
