Canada Dollar Takes Hit as Strong US Economic Data Boosts Greenback

The Canadian dollar weakened against its US counterpart on Monday due to strong Purchasing Managers' Index (PMI) data from the United States.

The PMI readings for services and manufacturing sectors came in above analyst forecasts, signaling continued resilience in the world's largest economy.

A stronger PMI reading typically bolsters the case for tighter monetary policy from the Federal Reserve, making the US dollar more attractive to investors seeking higher yields.

This dynamic was the primary catalyst for the USD/CAD exchange rate moving higher during the session.