|

USD/CAD extends its upside above 1.3520, US GDP data eyed

  • USD/CAD gains momentum near 1.3532 ahead of US GDP data.
  • The Bank of Canada (BoC) held the overnight rate unchanged for a fourth consecutive meeting, as widely expected.
  • US S&P Global Composite PMI for January signalled the fastest rise in business activity since June 2023.
  • The flash US GDP Annualized (Q4), the weekly Initial Jobless Claim and Durable Goods Orders will be released on Thursday.

The USD/CAD pair extends the rally below the mid-1.3500s during the early Asian trading hours on Thursday. The Bank of Canada (BoC) held its benchmark interest rate steady at 5.0% on Wednesday, marks the fourth consecutive hold from the central bank. The attention will turn to the preliminary US GDP growth numbers for the fourth quarter (Q4), due on Thursday. At press time, USD/CAD is trading at 1.3532, gaining 0.03% on the day.

The BoC maintained the overnight rate steady for the fourth time in a row, continuing the pause that began following the las thike in July last year. The BoC governor Tiff Macklem stated on Wednesday that the focus of central bank has shifted from whether interest rates are high enough to how long until they can begin to be lowered.  According to the Bank of Canada’s Monetary Policy Report (MPR), the central bank expected that inflation will hit its 2% target in 2025.

The US S&P Global Composite PMI for January signalled the fastest rise in business activity since June 2023, coming in at 52.3 versus 50.9 prior, beating the market expectations. Meanwhile, the Services PMI rose to 52.9 in January from 51.4 in December. The manufacturing figure grew to 50.3 from 47.9 in the previous reading. The stronger-than-expected PMIs indicate that the US economy is on pace for a soft-landing.

On Tuesday, Former St. Louis Federal Reserve (Fed) President James Bullard said that Fed may start cutting interest rates potentially as soon as March, even if inflation has not hit 2% target. However, Fed governor Christopher Waller stated that the Fed should cut rates "methodically and carefully" and definitely not in a rushed manner. Atlanta Fed President Raphael Bostic said he sees rate cuts beginning in the third quarter.

Moving on, market participants will monitor the flash US Gross Domestic Product Annualized (Q4), the weekly Initial Jobless Claim and Durable Goods Orders. On Friday, the US Core Personal Consumption Expenditures Price Index (Core PCE), Fed's preferred inflation measure, will be the highlight.

USD/CAD

Overview
Today last price1.3528
Today Daily Change0.0001
Today Daily Change %0.01
Today daily open1.3527
 
Trends
Daily SMA201.3396
Daily SMA501.3467
Daily SMA1001.3562
Daily SMA2001.3482
 
Levels
Previous Daily High1.3528
Previous Daily Low1.343
Previous Weekly High1.3542
Previous Weekly Low1.3382
Previous Monthly High1.362
Previous Monthly Low1.3178
Daily Fibonacci 38.2%1.3491
Daily Fibonacci 61.8%1.3467
Daily Pivot Point S11.3462
Daily Pivot Point S21.3397
Daily Pivot Point S31.3365
Daily Pivot Point R11.356
Daily Pivot Point R21.3593
Daily Pivot Point R31.3658

Author

Lallalit Srijandorn

Lallalit Srijandorn is a Parisian at heart. She has lived in France since 2019 and now becomes a digital entrepreneur based in Paris and Bangkok.

More from Lallalit Srijandorn
Share:

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

By subscribing you agree to our Terms and conditions.

Editor's Picks

EUR/USD: Sellers attack 1.1700 as USD stages a solid comeback

EUR/USD attacks 1.1700 amid heavy selling interest in the European trading hours on Wednesday. A solid comeback staged by the US Dollar weighs heavily on the pair, as traders look to USD short covering ahead of US CPI on Thursday. However, the downside could be capped by hawkish ECB expectations. 

GBP/USD slides toward 1.3300 after softer-than-expected UK inflation data

GBP/USD has come under intense selling pressure, eyeing 1.3300 in the European session on Wednesday. The UK annual headline and core CPI rose by 3.2% each, missing estimates of 3.5% and 3.4%, respectively, reaffirming dovish BoE expectations and smashing the Pound Sterling across the board. 

Gold: Bulls await breakout through multi-day-old range amid Fed rate cut bets

Gold attracts fresh buyers during the Asian session on Wednesday, though it remains confined in a multi-day-old trading range amid mixed fundamental cues. The global risk sentiment remains on the defensive amid economic woes and fears of the AI bubble burst. Moreover, dovish US Federal Reserve expectations lend support to the non-yielding yellow metal, though a modest US Dollar uptick might cap any further appreciating move.

Bitcoin, Ethereum and Ripple extend correction as bearish momentum builds

Bitcoin, Ethereum, and Ripple remain under pressure as the broader market continues its corrective phase into midweek. The weak price action of these top three cryptocurrencies by market capitalization suggests a deeper correction, as momentum indicators are beginning to tilt bearish.

Ukraine-Russia in the spotlight once again

Since the start of the week, gold’s price has moved lower, but has yet to erase the gains made last week. In today’s report we intend to focus on the newest round of peace talks between Russia and Ukraine, whilst noting the release of the US Employment data later on day and end our report with an update in regards to the tensions brewing in Venezuela.

AAVE slips below $186 as bearish signals outweigh the SEC investigation closure

Aave (AAVE) price continues its decline, trading below $186 at the time of writing on Wednesday after a rejection at the key resistance zone. Derivatives positioning and momentum indicators suggest that bearish forces still dominate in the near term.