USD/CAD rises toward 1.3700 ahead of US PCE, Canada’s GDP

Source Fxstreet
May 31, 2024 03:00
  • USD/CAD rebounds as investors adopt caution ahead of US PCE on Friday.
  • The decline in the US Treasury yields could limit the advance of the US Dollar.
  • Canada’s GDP Annualized is expected to expand by 2.2% in the first quarter.

USD/CAD halts its recent losses, trading around 1.3690 during the Asian session on Friday. US Dollar (USD) rebounds ahead of the Federal Reserve's preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index, which will be released on Friday.

US Gross Domestic Product (GDP) Annualized growth rate was revised lower to 1.3% from 1.6% for the first quarter, prompting investors to adjust the Federal Reserve’s (Fed) policy outlook to loosen. This causes uncertainty about a September rate cut. Additionally, the US weekly Initial Jobless Claims for the week ending May 2 rose to 219K from the previous week of 216K, above the market consensus of 218K.

The decline in the US Treasury yields could limit the advance of the US Dollar. US Dollar Index (DXY), which measures the value of the US Dollar (DXY) against six other major currencies, trades higher around 104.80 with 2-year and 10-year yields on US Treasury bonds standing at 4.92% and 4.54%, respectively, by the press time.

In Canada, expectations for June rate cuts by the Bank of Canada (BoC) have waned due to recent data indicating ongoing price pressures. In April, producer prices surged by 1.5% from the previous month, following a 0.9% increase in March, nearly doubling the anticipated 0.8% change. Interest rate futures now show that only 34% of the market is expecting a 25-basis point rate cut at the BoC’s June meeting, down from 46% a week ago.

On Friday, Statistics Canada will release the country's Gross Domestic Product (GDP) data. The annualized figure for the first quarter is expected to show a 2.2% expansion, up from the 1.0% growth recorded in the previous quarter.

USD/CAD

Overview
Today last price 1.3684
Today Daily Change 0.0003
Today Daily Change % 0.02
Today daily open 1.3681
 
Trends
Daily SMA20 1.3667
Daily SMA50 1.366
Daily SMA100 1.3577
Daily SMA200 1.3575
 
Levels
Previous Daily High 1.3735
Previous Daily Low 1.366
Previous Weekly High 1.3744
Previous Weekly Low 1.3596
Previous Monthly High 1.3846
Previous Monthly Low 1.3478
Daily Fibonacci 38.2% 1.3689
Daily Fibonacci 61.8% 1.3706
Daily Pivot Point S1 1.3649
Daily Pivot Point S2 1.3617
Daily Pivot Point S3 1.3574
Daily Pivot Point R1 1.3724
Daily Pivot Point R2 1.3767
Daily Pivot Point R3 1.3799

 

 

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Copper Long-term forecast: Will Copper Price Expected To Soar In 2023?The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
Author  Mitrade
The price of copper is affected by various of factors. You may wonder how the price of cooper will be in 2023, check out our forecast analysis.
placeholder
Understanding the first crypto market crash of 2024 and what to expect nextThe 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
Author  FXStreet
The 365-day MVRV ratio suggests that this crash may be just the beginning. If the ETF is rejected before the second quarter of 2024, it could trigger a sharp correction.
placeholder
Natural Gas faces upside pressure as European traders prepare for next heating seasonNatural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
Author  FXStreet
Natural Gas (XNG/USD) prices are holding ground above $2.00 on Friday after a brief dip earlier this week. Gas prices are quickly recovering as mainland Europe is gearing up for the next heating season, with traders starting to negotiate contracts in
placeholder
Bitcoin Price’s Path To $300,000 Cleared By Massive Bullish Pattern, Says AnalystAccording to an analysis shared by renowned crypto analyst Gert van Lagen, the Bitcoin price chart has illustrated a significant technical pattern in the 3-day chart (BTC/USD) that could potentially
Author  NewsBTC
According to an analysis shared by renowned crypto analyst Gert van Lagen, the Bitcoin price chart has illustrated a significant technical pattern in the 3-day chart (BTC/USD) that could potentially
placeholder
US Dollar flattens as Powell smashes hopes of quick interest-rate cutsThe US Dollar (USD) trades overall in the green against most peers on Thursday, posting only slight gains, making the US Dollar Index (DXY) trade in a very narrow range.
Author  FXStreet
The US Dollar (USD) trades overall in the green against most peers on Thursday, posting only slight gains, making the US Dollar Index (DXY) trade in a very narrow range.
goTop
quote