Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
Final hours: unlock premium data with Claim 60% OFF
Canadian Dollar Extends Gains Ahead of GDP
www.investing.com/analysis/canadian-dollar-extends-gains-ahead-of-gdp-200642266
Canadian Dollar Extends Gains Ahead of GDP
By MarketPulse (Kenny Fisher) | Sep 29, 2023 06:36AM ET - Canada’s GDP expected to improve
- US PCE Core Prices projected to stay steady at 0.2%
The Canadian dollar has posted losses on Friday. In the European session, USD/CAD is trading at 1.3446, down 0.28%.
Canada’s GDP Expected to Post 0.1% Gain
I have noticed the phrase “US exceptionalism” being bandied about lately. This is in reference to the impressive strength of the US economy in the face of rising interest rates, in comparison to other major economies most of which are struggling. For proof, one has to go no further than the northern neighbor of the US, as Canada’s economy contracted by 0.2% m/m in July, with weakness reported across the economy. The labor market, which held strong as the Bank of Canada piled on higher interest rates, has slowed. Inflation rose in August to 4.0%, up sharply from 3.3% in July and well above the 2% target. Two of three core inflation measures also climbed, raising concerns that the central bank may be forced to raise interest rates before the end of the year.
Canada releases the August GDP report later today, with the markets expecting a small gain of 0.1% m/m. This would essentially point to stagnation, but that would be better than a second straight reading of negative growth, which would technically mean that the economy is in a recession. The Canadian dollar has held its own in September despite this grim backdrop, helped by rising oil prices which are fast approaching $100.
In the US, the markets will be keeping an eye on Core PCE Prices, which is considered the Fed’s preferred inflation indicator. The index was unchanged in July at 0.2% m/m, but the annual rate remains quite high at 4.2%. The consensus estimate is unchanged at 0.2%, and an unexpected reading could affect the movement of the US dollar.
USD/CAD Technical
- USD/CAD is testing resistance at 1.3468. The next resistance line is 1.3553
- 1.3408 and 1.3323 are the next support lines
Related Articles
Week Ahead – Will the central bank bonanza kill the festive joy or...
By Trading Point - Dec 08, 2023
Fed, ECB, BoE and SNB hold their final policy decisions of the yearWill they push back on rate cut expectations?US CPI and flash PMIs will be crucial tooFed to hold rates but will...
Australian Dollar on a Roller-Coaster, US NFP Looms
By Kenny Fisher - Dec 08, 2023
Australian dollar steady after sharp gains on Thursday US nonfarm payrolls expected to climb to 180,000 The Australian dollar is trading quietly on Friday. In the European session,...
FX Daily: Yen Bulls Turn to US Payrolls
By Frantisek Taborsky - Dec 08, 2023
The big yen rally has been exacerbated by positioning factors, but markets may keep speculating on a BoJ December hike unless Japanese officials protest against hawkish bets before...
Canadian Dollar Extends Gains Ahead of GDP
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.