- USD/CAD trades sideways around 1.3570 ahead of the US and Canada economic data.
- The BoC may shift to rate cuts early if the Canadian Q4 GDP turns out weaker than expectations.
- The Loonie asset hovers around the horizontal resistance of the Ascending Triangle formation.
The USD/CAD pair is stuck in a tight range around 1.3570 in the European session on Thursday. The Loonie asset awaits the United States core Personal Consumption Expenditure Price Index (PCE) and the Canadian Q4 Gross Domestic Product (GDP) data for fresh guidance, both will be published at 13:30 GMT.
The US Dollar Index turns subdued ahead of the crucial US inflation data. The monthly core PCE Price Index data is anticipated to have grown by 0.4% in January against 0.2% increase in December. The annual underlying inflation data is forecasted to have grown at a slower pace of 2.8% vs. 2.9% growth in December.
On the Canadian Dollar front, the monthly GDP data for December is expected to have grown at a steady pace of 0.2%. The Bank of Canada (BoJ) projected earlier that the growth rate in the last quarter of 2023 will be flat. Weak GDP growth would deepen hopes of early rate cuts by the Bank of Canada (BoC).
USD/CAD aims to deliver a breakout of the Ascending Triangle chart pattern formed on a daily timeframe. The asset hovers around the horizontal resistance of the aforementioned pattern plotted from December 13 high at 1.3608, while the upward-sloping border is placed from December 29 low at 1.3178.
The near-term demand is upbeat as the pair is holding above the 50-day Exponential Moving Average (EMA), which trades around 1.3487.
The 14-period Relative Strength Index (RSI) climbs above 60.00, indicating that momentum leans toward the upside.
Fresh upside would appear if the asset breaks above December 13 high at 1.3608, which will drive the asset towards November 15 low at 1.3655, followed by the round-level resistance of 1.3700.
On the flip side, a downside move below February 22 low at 1.3441 would expose the asset to February 9 low at 1.3413. A breakdown below the latter would extend downside towards January 15 low at 1.3382.
USD/CAD daily chart
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 retreats to 1.0700 area following post-PCE jump
After spiking to a daily high of 1.0720 with the immediate reaction to US PCE inflation data, EUR/USD lost its traction and declined to the 1.0700 area. Investors remain cautious ahead of this weekend's French election and make it difficult for the Euro to gather strength.
GBP/USD stays below 1.2650 after US inflation data
GBP/USD struggles to preserve its bullish momentum and trades below 1.2650 in the American session on Friday. Earlier in the day, the data from the US showed that the annual core PCE inflation declined to 2.6% in May, limiting the USD's upside and helping the pair hold its ground.
Gold keeps its daily gains near $2,330 following US PCE data
Gold prices maintain their constructive bias around $2,330 after US inflation readings gauged by the PCE matched consensus in May and US yields advance slightly across the curve.
BTC struggles around the $62,000 level
Bitcoin price faces pullback resistance at the lower band of the descending wedge around $62,000. Ethereum price finds support at $3,288, the 61.8% Fibonacci retracement level. Ripple price faces resistance at $0.500, its daily resistance level.
French Elections Preview: Euro to suffer after the calm, as specter of extremists, uncertainty rise Premium
The first round of French parliamentary elections is set to trigger high uncertainty. Soothing messages from the far right and far left leave the Euro vulnerable to falls. Calm may return only after the second round of voting on July 7.