USD/CAD rises above 1.3900 as traders eye US PCE and canadian GDP
Press Hub UCapital
Share:
The USD/CAD pair has strengthened, trading above 1.3900 after recently reaching a peak of 1.3940, the highest since August. Traders are closely watching upcoming economic data from the U.S. and Canada, particularly the U.S. Personal Consumption Expenditure (PCE) Price Index and Canadian GDP figures, which could influence market sentiment.
USD/CAD Rises Above 1.3900 as Traders Eye US PCE and Canadian GDP
Market Overview
The USD/CAD pair has regained strength, trading above 1.3900 after recently peaking at 1.3940, its highest since August. Market participants are focused on upcoming key economic data from both the US and Canada, with the US Personal Consumption Expenditure (PCE) Price Index likely to influence Federal Reserve policy expectations and, consequently, USD price action. Canada’s monthly GDP data will also be pivotal, providing insight into the Canadian economy's resilience amid fluctuating Oil prices.
Oil Prices and the Loonie
A recent decline in Oil prices is weighing on the Canadian Dollar (Loonie), given Canada’s reliance on energy exports. As the Loonie weakens, it supports the USD/CAD pair’s upside. Meanwhile, the US Dollar remains well-supported by higher US Treasury yields, underpinned by expectations of slower interest rate cuts by the Fed and concerns over fiscal deficits as the US election approaches.
Technical Analysis
USD/CAD remains in bullish territory near 1.3900. Immediate resistance is at the recent high of 1.3940, with a break above potentially opening a path to the 1.4000 level, a psychological barrier. On the downside, support lies around 1.3850, with further support at 1.3800 should Oil prices recover or Canadian data surprise to the upside.
Conclusion
With the US Dollar’s safe-haven appeal bolstered by elevated bond yields and election uncertainty, the USD/CAD pair may continue its upward trend. Key economic data, especially US PCE and Canadian GDP, will provide additional direction in the near term.
USD/CAD Rises Above 1.3900 as Traders Eye US PCE and Canadian GDP
Market Overview
The USD/CAD pair has regained strength, trading above 1.3900 after recently peaking at 1.3940, its highest since August. Market participants are focused on upcoming key economic data from both the US and Canada, with the US Personal Consumption Expenditure (PCE) Price Index likely to influence Federal Reserve policy expectations and, consequently, USD price action. Canada’s monthly GDP data will also be pivotal, providing insight into the Canadian economy's resilience amid fluctuating Oil prices.
Oil Prices and the Loonie
A recent decline in Oil prices is weighing on the Canadian Dollar (Loonie), given Canada’s reliance on energy exports. As the Loonie weakens, it supports the USD/CAD pair’s upside. Meanwhile, the US Dollar remains well-supported by higher US Treasury yields, underpinned by expectations of slower interest rate cuts by the Fed and concerns over fiscal deficits as the US election approaches.
Technical Analysis
USD/CAD remains in bullish territory near 1.3900. Immediate resistance is at the recent high of 1.3940, with a break above potentially opening a path to the 1.4000 level, a psychological barrier. On the downside, support lies around 1.3850, with further support at 1.3800 should Oil prices recover or Canadian data surprise to the upside.
Conclusion
With the US Dollar’s safe-haven appeal bolstered by elevated bond yields and election uncertainty, the USD/CAD pair may continue its upward trend. Key economic data, especially US PCE and Canadian GDP, will provide additional direction in the near term.