USD/CAD extends sideways grind above 1.3400 after Canada GDP data
- USD/CAD continues to fluctuate in a tight range above 1.3400.
- Canadian economy expanded by 4.5% on a monthly basis in May.
- US Dollar Index stays near 93.00 after mixed US data.
The USD/CAD pair struggled to make a decisive move in either direction after the macroeconomic data releases from Canada and the United States on Friday. As of writing, the pair was trading at 1.3420, where it was virtually unchanged on a daily basis.
Canadian economic activity recovers nicely in May
The monthly data published by Statistics Canada showed on Friday that the economic activity in Canada expanded by 4.5% on a monthly basis in May. Although this reading came in better than the market expectation of 3.5%, the commodity-sensitive loonie failed to gathered strength amid falling crude oil prices. At the moment, the barrel of West Texas Intermediate is losing more than 1% on the day to trade at $39.80.
On the other hand, the US Bureau of Economic Analysis reported that Personal Spending in June increased by 5.6%. However, further details of the publication showed that Personal Income declined by 1.1% in the same period. Other data from the US revealed that the ISM Chicago's Purchasing Managers' Index improved to 51.9 in July from 36.6 in June and the University of Michigan's Consumer Sentiment Index dropped to 72.5 in July to fall short of analysts' estimate of 73.
Following these data, the US Dollar Index (DXY) edged slightly higher but couldn't stage a convincing rebound. As of writing, the DXY was posting small daily gains at 93.05.
Technical levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
