- USD/CAD oscillates in a narrow range around 1.3600 amid sideways US Dollar.
- Fed Powell at Jackson Hole diverged the focus of investors to economic data citing that the central bank will remain data-dependent.
- Canada’s Q2 GDP is expected to deliver a slower pace vs. Q1 figures, which would allow the BoC to maintain the status quo.
The USD/CAD pair oscillates in a narrow range near the round-level resistance of 1.3600 in the late European session. The Loonie asset remains sideways following the footprints of the US Dollar Index (DXY), which is struggling to find a decisive move, trading around 104.00.
S&P500 futures posted some decent gains in the London session, warranting a positive opening ahead. US equities are expected to remain in action as investors fully assessed the commentary from Federal Reserve (Fed) Chair Jerome Powell at the weekend.
The US Dollar remained muted marginally above 104.00 on Monday as investors shifted their focus toward upcoming economic data for August. Fed Powell at Jackson Hole diverged the focus of investors to economic data citing that the central bank will remain data-dependent for further action. Jerome Powell commented that two months of decline in inflationary pressures is only the beginning of what we need to build confidence in the inflation path.
This week, investors will keep an eye on the labor market and ISM manufacturing PMI data for August. For further policy action, market participants want to know whether labor market conditions are cooling or still remain extremely tight. Signs of a cooling labor market would stem pressure on the US Dollar.
On the Canadian Dollar front, investors are focusing on the April-June quarter Gross Domestic Product (GDP), which will be released on Friday at 12:30 GMT. As per Reuters, Q2 data is expected to show the economy grew at a slower pace of 1.1% from the 3.1% pace recorded for the January-March quarter. This would allow the Bank of Canada (BoC) to announce an unchanged interest rate decision and will keep interest rates steady at 5%.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds steady near 1.0800 after German sentiment data
EUR/USD stays in a consolidation phase at around 1.0800 on Tuesday after closing in positive territory on Monday. The upbeat ZEW sentiment data from Germany fails to provide a boost to the Euro as investors await producer inflation data from the US and Fed Chairman Powell's speech.
GBP/USD drops below 1.2550 after UK jobs data
GBP/USD struggles to build on Monday's gains and trades in the red below 1.2550 in the European session on Tuesday. The data from the UK showed that the Unemployment Rate edged higher to 4.3% in the three months to March as forecast, failing to help Pound Sterling find demand.
Gold price edges higher ahead of US PPI data, Fed’s Powell speech
The gold price (XAU/USD) rebounds despite the consolidation of the US Dollar (USD) on Tuesday. The upside of yellow metal might be limited as traders might wait on the sidelines ahead of key US inflation data this week.
Ethereum knocking at support’s door
Crypto market capitalisation rose 0.8% over the past 24 hours to 2.2 trillion, but growth exceeded 2% for most of the period. However, it dipped at the start of active European trading, temporarily returning to levels of a day ago.
Entering a crucial run of data for financial markets
We are entering a crucial period for financial markets and forecasters as Americans' near-term inflation expectations rise again. Upcoming reports on the CPI and PPI for April, along with new data on retail sales and industrial production, will provide valuable insights.