The US Dollar (USD) gains strength and continues rising high against the Canadian Dollar (CAD) after the Institute for Supply Management, United States, released a reading of above 50 with respect to manufacturing PMI.
The market manufacturing PMI remained 51.7 in June as compared to 52.1 in the month before. However, it was more than the figure anticipated by economists i-e 51.0.
The manufacturing market PMI shows the prevailing business conditions of the market, thereby, representing the consumer’s confidence. A reading below 50 alarms for a bearish market whereas a reading higher than 50 indicates a bullish trend for the US Dollar (USD).
Being a sensitive indicator, the trade balance plays a significant role in shaping up the US economy. Reading higher than the previous one shows a bullish market for the US Dollar (USD) whereas a lower reading indicates inflation and alarms devaluation of the same.
Since the US Dollar succeeded in rising up over the last week, it is anticipated that it will continue its journey following the bullish trend. The consensus of the market leaders also seems on a positive edge with a predicted value of 0.2%. The weekly greenish candle showed in the graph below represents the clear image with respect to the successful recovery of the US Dollar.
Trading the USDCAD at current levels cant be a better idea to start with. However, traders looking for a short term position may also try their fate for sure.