• The Canadian Dollar rose on Wednesday, supported by other markets.
• A lack of data from Canada leaves CAD at the mercy of sentiment.
• Canadian GDP figures set to be overshadowed by US PCE inflation.

The Canadian Dollar (CAD) drifted higher on Wednesday, bolstered more by overall market flows than any intrinsic bidding power behind the CAD itself. Markets have overspent on bullish risk appetite in the face of looming Federal Reserve (Fed) interest rate cuts expected in September, giving the Canadian Dollar room to breathe and pare back recent gains against the Greenback.

Canada remains broadly absent from this week’s economic calendar, with Friday’s Canadian Gross Domestic Product (GDP) figures slated to be entirely eclipsed by US Personal Consumption Expenditure Price Index (PCE) inflation data due to release at the same time.