• USD/CAD edges lower as traders await the testimony of Fed Chair Jerome Powell to the US Senate on Tuesday. 
• The pair is dominated by the US Dollar as the Canadian data schedule remains uneventful till next week. 
• Markets keep betting on the Federal Reserve cutting US interest rates in September, a potential negative for USD/CAD.  

USD/CAD edges higher on Tuesday, to trade in the 1.3640s, as it continues its broadly range-bound consolidative market mode of the last three-month period. Most of the emphasis is on the US Dollar side of the pair as traders await Federal Reserve (Fed) Chairman Jerome Powell’s testimony to the Senate Banking Committee, whilst Canada sees no scheduled macroeconomic events until Building Permits are released on Friday. 

Fed Chair Powell is expected to chart a conservative line in his testimony to the Senate on Tuesday, more-or-less repeating the message he made when he spoke in at the central-bankers get together in Sintra. There he eased his stance from strictly data-dependent to admitting that there were now welcome signs inflation was falling, but that more evidence was required to establish that it was significant and sustainable. As such, it is expected he will keep markets guessing as to the timing of the Fed’s next policy move.