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Thursday’s Canadian Dollar Performance Is Uneven as Markets Wait for Important Data

Leon Kramer

ByLeon Kramer

Jun 27, 2024
Thursday’s Canadian Dollar Performance Is Uneven as Markets Wait for Important Data

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  • The Canadian Dollar experienced fluctuations on Thursday due to a combination of mixed US data.
  • Canada will not be featured on the economic calendar until the release of Friday’s GDP update.
  • Inflation from the US PCE Price Index is also expected on Friday.

More significant economic data in Canada was needed on Thursday, which resulted in the Canadian dollar (CAD) performing at a varied level. As a result, the Canadian dollar was left in a state of uncertainty as it responded to a mix of positive and negative figures from the United States. As a result of the hectic schedule of US releases that took place on Thursday, the markets are getting ready for the forthcoming release of the Personal Consumption Expenditure Price Index (PCE) for inflation in the United States.

Traders of the Canadian dollar will have to wait until Friday to receive the most recent information regarding the country’s Gross Domestic Product (GDP) for the month of April because Canada is not included in the economic calendar for Thursday.

However, it is anticipated that the upcoming PCE Price Index inflation in the United States, which is scheduled to take place on Friday, will completely overshadow the GDP figures for Canada. As a significant indicator of inflation for the Federal Reserve (Fed), the statistics for price growth in the United States will likely receive a great deal of attention from the market as the trading week comes to a close.

US Data Shows a Mix of Results, and the Canadian Dollar Follows Suit

  • In May, there was a contraction in US Durable Goods Orders, with a decrease of -0.1% compared to the forecasted increase of 0.2%. This decline was more significant than anticipated, as it dropped from the previous month’s growth of 0.4%. 
  • The US Q1 GDP was in line with expectations, as the first-quarter GDP was slightly adjusted to 1.4% from the initial estimate of 1.3%.
  • The number of people filing for jobless benefits in the US exceeded expectations, with 233K individuals seeking new unemployment benefits for the week ending on June 21. The median market predictions had anticipated a figure of 236K, which was slightly lower than the previous week’s 238 K.
  • The US Core Personal Consumption Expenditures, a sneak peek of the PCE Price Index set to be released on Friday, showed a slight increase to 3.7% in the first quarter, surpassing the anticipated 3.6%.
  • The Canadian MoM GDP for May is anticipated to show a recovery, with a projected increase of 0.3% compared to the previous stagnant reading.
  • The anticipated inflation rate for the US core PCE Price Index in May is projected to decrease to 0.1%, down from the previous rate of 0.2%.

Canadian Dollar Fluctuates on a Day With Limited Data, but the Increases Remain Minimal

The Canadian Dollar (CAD) ‘s performance on Thursday was varied. It displayed a moderate performance in relatively calm market conditions. The Canadian dollar has gained slightly against the Swiss Franc (CHF) and the Japanese Yen (JPY) but is experiencing a slight decline against the Euro (EUR) and the Pound Sterling (GBP).

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The USD/CAD pair remains near Thursday’s initial bids following a slight decline to 1.3680. The pair is currently unable to break free from a price action trap around the 1.3700 level, as short-term buying interest is being hindered by the presence of the 200-hour Exponential Moving Average (EMA) at 1.3692.

The daily candlesticks are currently showing a positive rebound after encountering resistance at the 50-day EMA at 1.3676. This bounce is expected to end a recent period of losses, as the pair failed to sustain a bullish recovery above the 1.3800 level earlier in June.

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Leon Kramer

Leon Kramer

Leon Kramer, a renowned financial author, enlightens Main Forex News readers with his deep understanding of currency markets. His years in global finance, combined with an intuitive grasp of trends, delivers insightful, up-to-the-minute foreign exchange analysis.

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