USD/CAD consolidates at elevated levels around 1.3250 amid upbeat US Dollar

• USD/CAD turns sideways after rallying around 1.3250 amid solid appeal for the US Dollar.
• US factory activity is expected to continue its contracting spree for the ninth month.
• The Canadian Dollar fails to discover a cushion despite rising oil prices.

The USD/CAD pair oscillates in a narrow range after a rally around 1.3250 in the European session. Strength in the US Dollar is backed by Greenback’s fresh three-week high formed around 102.14. The Loonie asset is expected to deliver further action after guidance from United States Manufacturing PMI data.

S&P500 futures extend losses in London, portraying caution among market participants ahead of key economic data. The US Dollar Index continues its three-day winning spree on Tuesday as investors expect that the Federal Reserve (Fed) could continue hiking interest rates so that price stability could be achieved quickly.

US economic prospects display mixed performance on different parameters amid a higher interest rates scenario. Factory activities remained weak while consumer spending and labor market conditions showed resilience. For status updates on US Manufacturing PMI, July numbers will be keenly watched, which will be published at 14:00 GMT.

As per the consensus, US factory activity is expected to continue its contracting spree for the ninth month. The economic data is seen at 46.5, higher than the former release of 46.0. While Factory Orders are expected to decline to 44.0 against the former release of 45.6.

Meanwhile, the Canadian Dollar fails to discover a cushion despite rising oil prices. Increasing expectations that interest rates by global central banks will peak sooner have improved the appeal for the oil demand. It is worth noting that Canada is the leading exporter of oil to the United States and higher oil prices would strengthen the Canadian Dollar.