USD/CAD extends slide toward 1.2450 ahead of US GDP data
|- USD/CAD fell to a fresh two-week low on Thursday.
- USD remains on the back foot following Wednesday's FOMC event.
- Focus shifts to second-quarter GDP data from the US.
After closing in the negative territory on Wednesday, the USD/CAD pair continues to push lower amid broad-based USD weakness on Thursday. Currently, the pair, which touched a two week low of 1.2449, is trading at 1.2470, losing 0.45% on a daily basis.
DXY drops to fresh monthly low
The US Federal Reserve decided to leave its policy settings unchanged, as expected, following its July meeting. During the press conference, however, FOMC Chairman Jerome Powell adopted a cautious tone and signalled that they will be patient with regard to asset tapering. Powell's dovish remarks triggered a USD selloff and the US Dollar Index (DXY) dropped below 92.00 for the first time since June 29. At the moment, the DXY is down 0.25% on the day at 92.04.
Fed Quick Analysis: Powell only takes a baby step toward tapering, why the dollar could dive.
Later in the session, the US Bureau of Economic Analysis will release its first estimate of the annualized Gross Domestic Product growth for the second quarter. Investors expect the data to show an expansion of 8.6%.
Other data releases from the US will include June Pending Moe Sales and Initial Jobless Claims for the week ending July 24.
Meanwhile, the barrels of West Texas Intermediate (WTI) continues to trade in a tight range above $72 on Thursday, allowing the USD's market valuation to drive USD/CAD's movements.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.