• The Canadian Dollar gained ground on Tuesday as markets pivot out of Greenback.
• Bank of Canada Governor Macklem reaffirmed BoC’s stance.
• Markets are churning on rising Fed rate cut expectations.

The Canadian Dollar (CAD) gained ground on Tuesday, testing multi-month highs against the softening Greenback. Markets are pivoting into a USD-short stance on rising expectations of future Fed rate cuts, helping to give the CAD a leg up.

Canada remains largely absent from the economic calendar this week, but an appearance from Bank of Canada (BoC) Governor Tiff Macklem helped to provide a springboard for the Canadian Dollar by reminding markets that the BoC is committed to carefully observing deteriorating market conditions and giving a casual head-nod to credit-crunched Canadians.