- USD/CAD holds positive ground near 1.3705 on Thursday.
- US Durable Goods Orders rose by 2.6% MoM in March from the previous reading of a 0.7% increase.
- Canada’s February Retail Sales data supports the outlook for the BoC rate cut as soon as June.
The USD/CAD pair extends its recovery around 1.3705 during the early Asian trading hours on Thursday. The weaker-than-expected Canada’s Retail Sales weigh on the Canadian Dollar (USD). Later on Thursday, investors will closely monitor the US preliminary Gross Domestic Product (GDP) Annualized, which is projected to grow 2.5% in Q1.
Investors anticipate that the US Federal Reserve (Fed) will lower its Fed Funds Rate in September 2024, with a chance of nearly 70%, according to the CME FedWatch Tool. Last week, the Fed policymaker stated that the central bank’s current restrictive policy is appropriate and that the Fed wouldn’t cut rates until the end of the year. The higher-for-longer US rate narrative provides some support for the Greenback against the CAD.
About the data, the US Census Bureau showed on Wednesday that Durable Goods Orders in the United States rose by 2.6% MoM in March from the previous reading of a 0.7% increase. Excluding transportation, Durable Goods Orders gained by 0.2% MoM, below the market consensus of 0.3%
On the Loonie front, the recent Canadian Retail Sales data has triggered speculation that the Bank of Canada (BoC) might cut interest rates at its next meeting in June. Retail Sales in Canada decreased 0.1% MoM in February, worse than the estimation of a 0.1% increase. Excluding autos, Retail Sales fell 0.3% MoM in the same period, compared to the forecast of 0.0%. Additionally, the decline in crude oil prices exerts some selling pressure on the commodity-linked Loonie, as Canada is the largest crude oil exporter to the United States (US).
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 extends losses to 1.0550 after ECB Negotiated Wages data
EUR/USD holds lower ground near 1.0550 in European trading on Wednesday. The US Dollar resurgence alongside the US Treasury bond yields higher weighs on the pair. Meanwhile, ECB reported Negotiated Wage Rates rose 5.42% in Q3 but this data failed to support the euro.
GBP/USD reverses toward 1.2650, erases UK CPI-led gains
GBP/USD is falling back toward 1.2650 in the European session on Wednesday, having erased UK CPI inflation-data-led gains. The data from the UK showed that the annual inflation, as measured by the change in the CPI, rose to 2.3% in October from 1.7% in September. Fedspeak awaited.
Gold price moves away from one-week top on rising US bond yields, modest USD strength
Gold price retreats after touching a one-and-half-week top earlier this Wednesday and drops to a fresh daily low, below the $2,630 level heading into the European session. A goodish pickup in the US Treasury bond yields, bolstered by bets for a less aggressive policy easing by the Fed, revives the USD demand and undermines demand for the non-yielding yellow metal.
Why is Bitcoin performing better than Ethereum? ETH lags as BTC smashes new all-time high records
Bitcoin has outperformed Ethereum in the past two years, setting new highs while the top altcoin struggles to catch up with speed. Several experts exclusively revealed to FXStreet that Ethereum needs global recognition, a stronger narrative and increased on-chain activity for the tide to shift in its favor.
Sticky UK services inflation to keep BoE cutting gradually
Services inflation is set to bounce around 5% into the winter, while headline CPI could get close to 3% in January. That reduces the chance of a rate cut in December, but in the spring, we think there is still a good chance the Bank of England will accelerate its easing cycle.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.