The USD/CAD pair extends its downside near 1.3655 on Friday during the early Asian session. The decline of the US Dollar (USD) to the two-week lows around the mid-105.00s exerts some selling pressure on the pair. Investors now shift their focus to the release of US Personal Consumption Expenditures (PCE) Price Index data, due later on Friday.
The US economy grew at its slowest pace in nearly two years in the first quarter (Q1) of 2024 as prices rose at a faster pace, the Commerce Department revealed on Thursday. The first estimate of US Gross Domestic Product (GDP) grew by 1.6% on an annualized basis in the January-March period, compared to a 3.4% growth in Q4 2023. This reading came in below the market consensus of 2.5%. Additionally, US Personal Consumption Expenditures Prices rose at an annualized rate of 3.4% in Q1, nearly double the 1.8% pace recorded in Q4 2023.
The weaker-than-expected GDP growth and hotter-than-expected inflation weigh on the Greenback and create a headwind for USD/CAD. The markets expect the US Federal Reserve (Fed) to begin the first rate cuts in September, with traders now pointing to just one rate cut in 2024 following the GDP data, according to the CME FedWatch tool.
On the Loonie front, the weaker Canadian Retail Sales data on Wednesday triggered speculation that the Bank of Canada (BoC) might start cutting interest rates at its next meeting in June, which might drag the Canadian Dollar (CAD) lower. Nonetheless, the rebound of crude oil prices provides some support to the CAD, as Canada is the largest crude oil exporter to the United States (US).
Overview | |
---|---|
Today last price | 1.3657 |
Today Daily Change | -0.0046 |
Today Daily Change % | -0.34 |
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 |
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