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Canadian Dollar pares recent losses as CAD traders shrug off Canadian PMI miss

Canadian Dollar pares recent losses as CAD traders shrug off Canadian PMI miss
The Canadian Dollar (CAD) recovered ground on Tuesday after CAD traders shrugged off a slight misfire from Canadian Purchasing Managers Index (PMI) figures.

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The Canadian Dollar (CAD) saw a recovery on Tuesday despite a slight miss in the Canadian Purchasing Managers Index (PMI) figures. The flat print in S&P Global Manufacturing PMI figures in June and the rise in US JOLTS Job Openings in May helped soothe market jitters. The CAD was the strongest against the Swiss Franc. The Canadian Dollar (CAD) took a step higher on Tuesday, recovering near-term losses and climbing around four-tenths of one percent against the US Dollar (USD), Euro (EUR), and Japanese Yen (JPY) for the day. The key factors driving the Canadian Dollar (CAD) are the level of interest rates set by the Bank of Canada (BoC), the price of Oil, Canada’s largest export, the health of its economy, inflation and the Trade Balance, which is the difference between the value of Canada’s exports versus its imports. Other factors include market sentiment and the health of the US economy. The Bank of Canada (BoC) has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another. The price of Oil is a key factor impacting the value of the Canadian Dollar. Macroeconomic data releases gauge the health of the economy and can have an impact on the Canadian Dollar. The Canadian Dollar (CAD) is expected to remain in recovery mode until Friday’s labor data.

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