USD/CAD Gains Ground Near 1.4100 Amid Strengthening US Rate-Hike Bets
The USD/CAD currency pair has gained ground near 1.4100 in Thursday's early European session, driven by stronger US Manufacturing Purchasing Managers Index (PMI) data and reinforced US rate-hike bets.
According to the US S&P Global flash PMI released on Wednesday, the Composite PMI climbed to 58.4 in September from 56.0 in August, while the Manufacturing PMI rose to 57.0 in September versus 53.9 prior, above the market consensus of 53.5.
The US Federal Reserve (Fed) is now pricing in roughly a 69.7% odds that it would hike rates by a quarter percentage point in October, up from 48.7% one week ago, according to the CME FedWatch tool.
Bullish momentum above the 100-day SMA keeps the constructive view of the pair, with the initial support level emerging at 1.3960 and the first upside target to watch at 1.4115.