USD/CAD pair recovers slightly ahead of data releases
Daily Currency Update
The USD/CAD pair recovered slightly this morning near the 1.34852 level. This minor uplift comes ahead of the release of US Core Personal Consumption Expenditure (PCE) data and Canadian Q2 Gross Domestic Product Data (GDP), both set to be released tomorrow. Weak Canada GDP data would prompt the Bank of Canada (BoC) to ease monetary policy further. In oil news, crude oil prices have risen with Iraq reporting to uphold production cuts. West Texas Intermediate (WTI) crude oil traded near $77.06.Key Movers
Key Movers:The US Dollar Index (DXY), which tracks the greenback’s value against six major currencies recovered slightly to trade near the 101.398 level this morning. The USD is expected to remain on uneven ground as investors look toward the Core Personal Consumption Expenditure (PCE) index release tomorrow. The July PCE report is expected to show that year-over-year core inflation rose at a faster pace of 2.7% from 2.6% in June. This inflation data would significantly influence market speculation for the Federal Reserve’s September monetary policy.The EUR/USD pair was under renewed bearish pressure and dropped below 1.1100 to trade near 1.1081 this morning. The euro is expected to continue to fall below key support levels ahead of data releases later this week and next.
The GBP/USD pair fell over 0.5% on Wednesday after reaching its highest level since March 2022 at 1.3266 on Tuesday. The pair has been having difficulty regaining its traction so far today but has managed to limit its losses.
Expected Ranges
- EUR/CAD: 1.49091 - 1.49942 ▼
- GBP/CAD: 1.77117 - 1.77961 ▼
- AUD/CAD: 0.91387 - 0.91812 ▲
- USD/CAD: 1.34501 - 1.34818 ▼