USD/CAD loses traction above the 1.3200 mark, US GDP eyed

USD/CAD loses momentum following the Federal Reserve (Fed) meeting.
The Fed hiked its rate by 25 basis points (bps) to a target range of 5.25%–5.5%.
Market players anticipated that the BoC will likely not see the need to raise rates further this year.
Investors await preliminary Q2 US GDP growth.

Lallalit Srijandorn FXStreet

The USD/CAD pair struggles to gain and loses momentum above the 1.3200 mark during the early Asian session on Thursday. The major pair currently trades around 1.3204, down 0.03% for the day. The US Dollar is weakening following the Federal Open Market Committee (FOMC) meeting.

The Federal Open Market Committee (FOMC) hiked its interest rate by a quarter percentage point to a target range of 5.25%–5.5%, a move markets had fully priced in. This is the 11th rate hike since the FOMC began tightening policy in March 2022.

Following the rate decision, Fed Chairman Jerome Powell stated that the FOMC will assess the totality of incoming data, along with its implications for economic activity and inflation. He added that it's possible to raise the fed funds rate again at the September meeting if the data warrants it.

The data released earlier this week revealed that the Conference Board's Consumer Confidence Index rose to 117 in July from 110.1 (revised from 109) in June. On the same line, the House Price Index for May YoY came in at 2.8%, above expectations of 2.6% but below the prior month's data. Investors will digest the data from the Fed meeting and take cues from the upcoming economic data later in the week.

On the Canadian Dollar front, the Bank of Canada (BoC) increased interest rates by 25 basis points (bps) to a 22-year high of 5.0% on July 12. The central bank has hiked rates ten times since March 2022. Despite this, market players anticipated that the BoC would likely not see the need to raise rates further this year.

According to a survey of market participants released by the central bank on Monday, a median of the participants anticipate the bank to maintain interest rates at a 22-year high of 5.00% until the end of 2023 before cutting the rates in March.

In the meantime, the Canadian Dollar might attract some follow-through buying amid upbeat oil prices. It’s worth noting that Canada is the leading oil exporter to the United States, and higher crude prices strengthen the Canadian Dollar.

Looking ahead, market participants will focus on the release of US Advanced Gross Domestic Product (GDP) QoQ, core Personal Consumption Expenditure (PCE) Price Index MoM, Durable Goods Orders, and Initial Jobless Claims data later in the day. Also, the Canadian Gross Domestic Product for May MoM will be due on Friday. These data could give the USD/CAD pair a clear direction.

USD/CAD

Overview
Today last price	1.3205
Today Daily Change	-0.0003
Today Daily Change %	-0.02
Today daily open	1.3208

Trends
Daily SMA20	1.322
Daily SMA50	1.3316
Daily SMA100	1.3435
Daily SMA200	1.3468

Levels
Previous Daily High	1.3238
Previous Daily Low	1.3169
Previous Weekly High	1.3244
Previous Weekly Low	1.312
Previous Monthly High	1.3585
Previous Monthly Low	1.3117
Daily Fibonacci 38.2%	1.3211
Daily Fibonacci 61.8%	1.3195
Daily Pivot Point S1	1.3172
Daily Pivot Point S2	1.3136
Daily Pivot Point S3	1.3103
Daily Pivot Point R1	1.3241
Daily Pivot Point R2	1.3274
Daily Pivot Point R3	1.331

Author

Lallalit Srijandorn

FXStreet

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.

GBP/USD climbs to four-day highs near 1.3250

GBP/USD rapidly reverses Friday’s small losses and challenges the 1.3250 level, or four-day tops, at the beginning of the week. Cable’s upside comes on the back of further loss of momentum in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD extends the advance past 1.1400

EUR/USD starts the week on a positive note, trading above 1.1400 on Monday as broad-based US Dollar weakness lends support to the pair. In the meantime, investors continue to monitor developments surrounding efforts to end the US-Iran conflict, while attention gradually shifts to the ECB's annual forum and the US NFP data.

Gold falters just ahead of $4,100

Gold remains under modest bearish pressure just above the key $4,000 mark per troy ounce on Monday. The yellow metal struggles to extend its recent gains as renewed effervescence in the Middle East revives inflation concerns and bolsters Fed rate hike expectations.

Bitcoin four-year cycle: BTC risks 75% drawdown with four months of bear market still ahead

Bitcoin price continues to trend downward below the $60,000 support zone after losing over 50% of its value since the $126,199 high in October. Bitcoin’s four-year cycle, measured from cycle tops to bottoms, suggests that four months of a bear market are still ahead.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.