Breaking News
Investing Pro 0
🙌 It's Here: the Only Stock Screener You'll Ever Need Get Started

USD/CAD Rally Continues, GDP Next

By MarketPulse (Kenny Fisher)CurrenciesMar 31, 2023 06:18AM ET
USD/CAD Rally Continues, GDP Next
By MarketPulse (Kenny Fisher)   |  Mar 31, 2023 06:18AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio

The Canadian dollar is looking sharp, with gains of 1.5% this week against the greenback. The week wraps up with Canadian GDP while the US releases the Core PCE Price Index. In the European session, USD/CAD is trading at 1.3549, up 0.21%.

Canada’s GDP expected to rise

Canada’s economy recorded zero growth in the fourth quarter, ending a streak of five straight winning quarters. This was a major disappointment, as the estimate stood at 1.5%. The lack of growth is an indication that the Bank of Canada’s rate hikes have slowed economic activity, although the labor market remains surprisingly robust.

Will we see an improvement in the economy? GDP is projected to have improved to 0.3% in January, driven by growth in manufacturing and consumer spending in January. As well, the labor market crushed it, adding 150,000 new jobs in January, versus 15,000 anticipated.

The Bank of Canada always keeps a close eye on employment and inflation, which are key factors in the central bank’s rate decisions. BoC policymakers now have a new headache, namely, the banking crisis which caused market mayhem across the globe. The crisis has eased somewhat, with no new contagion since the collapse of Credit Suisse and four US banks. Still, the BoC is concerned over fallout from the crisis. BoC Deputy Governor Gravelle said this week that the BoC was monitoring the stresses to the global banking system as the bank considers its next rate move and economic projections at the April 4th meeting.

The Bank of Canada left rates unchanged at 4.5% at its meeting earlier this month, the first time it has paused during the current rate-tightening cycle which began last year. The markets expect the BoC to continue to pause at the next meeting, although the central bank remains concerned about the robust labor market and strong wage growth.

The US wraps up its week with the Core PCE Index, the Fed’s preferred inflation indicator. The consensus estimate stands at 0.4%, versus 0.6% prior. Personal Spending and Personal Income are also expected to soften. If these indicators head lower, it would likely weigh on the US dollar, due to higher expectations of the Fed easing policy.

USD/CAD Faily Chart
USD/CAD Faily Chart

USD/CAD Technical

  • USD/CAD is testing resistance at 1.3553. Above, there is resistance at 1.3649
  • 1.3475 and 1.3384 are providing support

Original Post

USD/CAD Rally Continues, GDP Next

Related Articles

USD/CAD Rally Continues, GDP Next

Add a Comment

Comment Guidelines

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.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your profile, will be public on and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
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'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
Continue with Google
Sign up with Email