USD/CAD trades with modest losses below 1.3650, eyes on Canadian/US PMI data


  • USD/CAD edges lower to 1.3625 in Monday’s early European session. 
  • The US PCE increased 0.3% MoM in April, in line with the consensus. 
  • Canadian economy grew at a slower-than-expected pace in Q1, boosting expectations for the first rate cut by the BoC. 

The USD/CAD pair trades with a mild bearish bias around 1.3625 during the early European session on Monday. The downtick of the pair is backed by the weaker US Dollar (USD) after the release of the US Personal Consumption Expenditures (PCE) Price Index. Investors will take more cues from the Canadian S&P Global Manufacturing PMI and US ISM Manufacturing PMI for May, which are due later on Monday. 

The US inflation remained steady in April, prompting the expectation that the Federal Reserve (Fed) will cut interest rates later in the year and drag the Greenback lower. The Commerce Department showed on Friday that the US PCE increased 0.3% MoM in April, matching the unrevised gain in March. Meanwhile, the Core PCE, excluding the volatile food and energy, rose 0.2% MoM in April, compared to a 0.3% gain in March. On an annual basis, the core PCE price index climbed 2.8% for the third consecutive month. The markets are now pricing in nearly a 53% odds of Fed rate cut in September, up from 49% before the inflation report.

On the Loonie front, the weaker Canadian Gross Domestic Product (GDP) for the first quarter triggered the first interest rate cut by the Bank of Canada (BoC) on Wednesday. The Canadian economy expanded at an annualized rate of 1.7%, missing the estimation of 2.2% expansion and the central bank's 2.8% forecast. Apart from the downbeat GDP data that weighs on the Canadian Dollar (CAD). The CAD is pressured by the decline of crude oil prices as Canada is the largest oil exporter to the United States. 

USD/CAD

Overview
Today last price 1.3628
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 1.3628
 
Trends
Daily SMA20 1.3664
Daily SMA50 1.3661
Daily SMA100 1.358
Daily SMA200 1.3575
 
Levels
Previous Daily High 1.369
Previous Daily Low 1.3619
Previous Weekly High 1.3735
Previous Weekly Low 1.3615
Previous Monthly High 1.3783
Previous Monthly Low 1.359
Daily Fibonacci 38.2% 1.3646
Daily Fibonacci 61.8% 1.3663
Daily Pivot Point S1 1.3602
Daily Pivot Point S2 1.3575
Daily Pivot Point S3 1.3531
Daily Pivot Point R1 1.3672
Daily Pivot Point R2 1.3716
Daily Pivot Point R3 1.3742

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD rises above 1.0900 as USD selloff picks up steam

EUR/USD rises above 1.0900 as USD selloff picks up steam

EUR/USD extends its weekly rally and trades above 1.0900 in the American session on Friday. Following a modest recovery attempt seen after strong producer inflation data from the US, the USD stays under bearish pressure as risk flows dominate the markets.

EUR/USD News

GBP/USD extends rally toward 1.3000 on broad USD weakness

GBP/USD extends rally toward 1.3000 on broad USD weakness

GBP/USD preserves its bullish momentum and rises toward 1.3000, trading at its strongest level in nearly a year. The improving risk mood doesn't allow the US Dollar to find demand following Thursday's CPI-inspired selloff and provides a boost to the pair.

GBP/USD News

Gold remains on track to end week above $2,400

Gold remains on track to end week above $2,400

Following a short-lasting downward correction in the early American session, Gold regains its traction and looks to end the week above $2,400. The persistent selling pressure surrounding the US Dollar heading into the weekend helps XAU/USD hold its ground.

Gold News

Worldcoin crumbles under selling pressure even as OpenAI eyes human-level problem-solving

Worldcoin crumbles under selling pressure even as OpenAI eyes human-level problem-solving

OpenAI, the American tech firm behind the Large Language Model ChatGPT, announced five levels towards building an Artificial General Intelligence. Employees at the firm told Bloomberg that with ChatGPT, Open AI is currently at level one. 

Read more

Week ahead – ECB set to hold rates, plethora of data on the way

Week ahead – ECB set to hold rates, plethora of data on the way

ECB is not expected to cut in July but will it signal one for next meeting? Retail sales will be the main highlight in the United States. UK CPI report will be vital for BoE’s August decision.

Read more

Forex MAJORS

Cryptocurrencies

Signatures