- The USD/CAD attracts some buyers at lower levels on Thursday, although it lacks bullish conviction.
- The moderate Boc posture and the bassist prices of oil continue to weaken to the CAD.
- The fall in the yields of the US bonds keeps the USD bullies on the defensive and limits cash prices.
The USD/CAD pair bounces more than 40 pips from the minimum intradica and rises to a new daily maximum, around the 1,4435 area during the first part of the European session on Thursday. Cash prices, however, lack continuation and remain confined in a family range maintained during the last month approximately.
The Canadian dollar (CAD) is still pressed for the moderate position of the Canada Bank (BOC) and the concerns about commercial rates threatened by the US president, Donald Trump. In fact, Boc decided to cut interest rates for the sixth consecutive time since June and announced the end of its quantitative hardening program. Apart from this, a bearish feeling around crude oil prices turns out to be another factor that weakens the CAD linked to raw materials and offers support to the USD/CAD torque.
Meanwhile, the Federal Reserve (FED) decided to stand firm at the end of a two -day meeting on Wednesday and pointed out that there would be no hurry to reduce indebted costs until inflation and employment data made it appropriate. This, in turn, is considered to provide some support to the US dollar (USD) and also act as a tail wind for the USD/CAD torque. That said, uncertainty about Trump administration policies causes a new fall in the yields of US Treasury bonds and slows the USD bulls when opening new positions.
Looking ahead, operators now expect the publication of the advanced GDP report of the fourth quarter of the US, which will be published later during the first American session. Apart from this, the yields of the American bonds and Trump’s rates plans will influence the USD. Apart from this, the dynamics of oil prices should contribute to produce short -term trading opportunities around the USD/CAD.
Economic indicator
Anuced Gross Domestic Product
The annualized GDP is published by the office Bureau of Economic Analysis and shows the value of goods, services and structures produced in a country in the period of one year. It is a gross measure of economic activity because it indicates the rhythm at which the economy of a country grows. A reading superior to expectations is bullish for the dollar, while a lower reading is bassist.
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Next publication: Mark Jan 30, 2025 13:30 (PREL)
Frequency: Quarterly
Dear: 2.6%
Previous: 3.1%
Fountain: US Bureau of Economic Analysis
The Us Bureau of Economic Analysis (BEA) Releases The Gross Domestic Product (GDP) Growth on Annualized Basis for Each Quarter. After publishing the first estimate, The Bea reviews The Data Two More Times, With The Third Release Representing the Final Reading. Usually, The First Estimate is The Main Market Move and a Positive Surprise is to USD-POSITIVE DEVELOPMENT WHILE A Disappointing print is Likely to Weight on the Greenback. Market Participants usually DESMISS The Second and Third Releases As The Are generally not significant angouch to MeaningFully Alter The Growth Picture.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
