The post USD/CAD even after release of Canadian GDP and US PCE data appeared on BitcoinEthereumNews.com.

USD/CAD trades flat at around 1.3700 after a big data day for the pair.  Canadian GDP showed a 0.3% rise in April suggesting a strong economy.  US PCE inflation data, the Fed’s preferred gauge, meanwhile, showed progress towards the Fed’s 2.0% target. USD/CAD trades flat at around 1.3700 on Friday after the release of Canadian economic growth data and US inflation data updated investors’ evaluations of the currency pair.  After starting the Asian session in the 1.3730s the pair declined during the day as the Canadian Dollar (CAD) steadily appreciated against its south-of-the-border counterpart. A late-stage rally by the US Dollar (USD), however, brought the pair even as the west coast began to rise. USD/CAD pulls back following Canadian GDP  The release of Canadian Gross Domestic Product (GDP) data for April at 12:30 GMT strengthened the CAD, speeding up USD/CAD’s descent.  GDP rose 0.3% in April in line with analysts expectations after showing a 0.0% rise in March, according to Statistics Canada. The preliminary estimate for May GDP was also released and showed a 0.1% rise.  Markets took the 0.3% growth rate in April as a positive sign for the economy, however, it is not likely to change the widely held expectation that the Bank Of Canada (BoC) will lower interest rates in July. This is likely to put a floor under downside for USD/CAD.  Currencies tend to depreciate when central banks lower interest rates because they reduce foreign capital inflows.  “The solid rise in GDP in April and preliminary estimate of a small increase in May leave the economy on track to perform better than the Bank of Canada expected this quarter, but not by enough to have any real impact on the probability of another interest rate cut in July,” said Stephen Brown, Deputy Chief North America Economist for Capital…

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Filed under: News - @ June 28, 2024 11:18 pm