USD/CAD moves below 1.3700 due to risk-on mood, US GDP awaited

Source Fxstreet
Apr 25, 2024 09:18
  • USD/CAD loses ground due to improving risk appetite.
  • The US Dollar depreciates following the subdued US Treasury yields.
  • The lower Canadian Retail Sales figures have fueled speculation that the BoC might opt to reduce interest rates in June.

USD/CAD pares its recent gains registered in the previous session, trading around 1.3670 during the European hours on Thursday. The improving risk appetite weakens the US Dollar (USD), undermining the USD/CAD pair.

The US Dollar Index (DXY), which measures the US Dollar (USD) against six major currencies, edging lower to near 105.60, down by 0.23%, by the press time on Thursday. The decline in the US Treasury yields, following mixed manufacturing data from the United States (US), put pressure on the Greenback.

According to the US Department of Commerce's report on Wednesday, US Durable Goods Orders surged by 2.6% month-over-month (MoM) in March, surpassing the previous reading of 0.7% and beating the estimated 2.5%. This marked the largest monthly increase in durable goods orders since last November, driven primarily by strong demand for transport equipment. Meanwhile, core goods, excluding transportation, only increased by 0.2% MoM, falling short of the expected 0.3%.

On Thursday, the preliminary Gross Domestic Product Annualized (Q1) data for the United States (US) is scheduled to be released, with expectations of a slowdown in the growth rate. These GDP figures will provide insights into the strength of the US economy and could potentially influence future actions by the Federal Reserve (Fed).

The Canadian Dollar (CAD) struggled after lower-than-expected Retail Sales data was released on Wednesday. This has sparked speculation that the Bank of Canada (BoC) may consider cutting interest rates at its next meeting in June. This sentiment may weigh on the Loonie Dollar (CAD).

USD/CAD

Overview
Today last price 1.3672
Today Daily Change -0.0031
Today Daily Change % -0.23
Today daily open 1.3703
 
Trends
Daily SMA20 1.3657
Daily SMA50 1.3579
Daily SMA100 1.3498
Daily SMA200 1.3537
 
Levels
Previous Daily High 1.3729
Previous Daily Low 1.3655
Previous Weekly High 1.3846
Previous Weekly Low 1.3724
Previous Monthly High 1.3614
Previous Monthly Low 1.342
Daily Fibonacci 38.2% 1.3701
Daily Fibonacci 61.8% 1.3683
Daily Pivot Point S1 1.3662
Daily Pivot Point S2 1.3622
Daily Pivot Point S3 1.3588
Daily Pivot Point R1 1.3737
Daily Pivot Point R2 1.377
Daily Pivot Point R3 1.3811

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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