USD/CAD rebounds above 1.3700, investors await US GDP data

Source Fxstreet
Apr 24, 2024 23:47
  • USD/CAD holds positive ground near 1.3705 on Thursday. 
  • US Durable Goods Orders rose by 2.6% MoM in March from the previous reading of a 0.7% increase.
  • Canada’s February Retail Sales data supports the outlook for the BoC rate cut as soon as June. 

The USD/CAD pair extends its recovery around 1.3705 during the early Asian trading hours on Thursday. The weaker-than-expected Canada’s Retail Sales weigh on the Canadian Dollar (USD). Later on Thursday, investors will closely monitor the US preliminary Gross Domestic Product (GDP) Annualized, which is projected to grow 2.5% in Q1. 

Investors anticipate that the US Federal Reserve (Fed) will lower its Fed Funds Rate in September 2024, with a chance of nearly 70%, according to the CME FedWatch Tool. Last week, the Fed policymaker stated that the central bank’s current restrictive policy is appropriate and that the Fed wouldn’t cut rates until the end of the year. The higher-for-longer US rate narrative provides some support for the Greenback against the CAD. 

About the data, the US Census Bureau showed on Wednesday that Durable Goods Orders in the United States rose by 2.6% MoM in March from the previous reading of a 0.7% increase. Excluding transportation, Durable Goods Orders gained by 0.2% MoM, below the market consensus of 0.3%

On the Loonie front, the recent Canadian Retail Sales data has triggered speculation that the Bank of Canada (BoC) might cut interest rates at its next meeting in June. Retail Sales in Canada decreased 0.1% MoM in February, worse than the estimation of a 0.1% increase. Excluding autos, Retail Sales fell 0.3% MoM in the same period, compared to the forecast of 0.0%. Additionally, the decline in crude oil prices exerts some selling pressure on the commodity-linked Loonie, as Canada is the largest crude oil exporter to the United States (US). 

USD/CAD

Overview
Today last price 1.3704
Today Daily Change 0.0041
Today Daily Change % 0.30
Today daily open 1.3663
 
Trends
Daily SMA20 1.365
Daily SMA50 1.3576
Daily SMA100 1.3497
Daily SMA200 1.3534
 
Levels
Previous Daily High 1.3714
Previous Daily Low 1.3656
Previous Weekly High 1.3846
Previous Weekly Low 1.3724
Previous Monthly High 1.3614
Previous Monthly Low 1.342
Daily Fibonacci 38.2% 1.3678
Daily Fibonacci 61.8% 1.3692
Daily Pivot Point S1 1.3641
Daily Pivot Point S2 1.362
Daily Pivot Point S3 1.3583
Daily Pivot Point R1 1.37
Daily Pivot Point R2 1.3736
Daily Pivot Point R3 1.3758

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
USD/CAD appreciates to near 1.3650 due to a downward correction in Oil pricesUSD/CAD edges higher for the second consecutive day, trading around 1.3650 during the Asian hours on Wednesday.
Source  Fxstreet
USD/CAD edges higher for the second consecutive day, trading around 1.3650 during the Asian hours on Wednesday.
placeholder
AUD/USD extends recovery as Greenback falters with Aussie Retail Sales in the barrelAUD/USD found some room on the high side on Monday after US markets dark for the Memorial Day holiday left the Greenback on the low side, propping up the Aussie and extending Friday’s recovery into a second day.
Source  Fxstreet
AUD/USD found some room on the high side on Monday after US markets dark for the Memorial Day holiday left the Greenback on the low side, propping up the Aussie and extending Friday’s recovery into a second day.
placeholder
Forex Today: The FX universe takes a breatherThe Greenback came under extra selling pressure against the backdrop of marginal volatility in response to the US and UK holidays.
Source  Fxstreet
The Greenback came under extra selling pressure against the backdrop of marginal volatility in response to the US and UK holidays.
goTop
quote