31 Oct 2024

current;-1.39204
target;-1.40000
sl;-1.38840

USD/CAD has regained upward momentum and is positioned near a multi-month peak established on Wednesday.

A recent decline in oil prices has weakened the Canadian dollar, providing some support to the currency pair.

However, a slight decrease in the USD may limit further gains as the market anticipates the release of the US PCE Price Index and Canadian GDP data.

The USD/CAD currency pair is experiencing renewed buying interest on Thursday and appears to have paused its corrective pullback from the 1.3940 level, which represents the highest point reached since August 5, noted the previous day. During the initial part of the European session, spot prices are trading above the 1.3900 threshold as market participants eagerly anticipate significant macroeconomic data from both the United States and Canada.

The US Personal Consumption Expenditure (PCE) Price Index is expected to offer insights into the Federal Reserve's interest rate projections, which will significantly impact the dynamics of the US Dollar (USD). Additionally, the upcoming monthly Canadian GDP report is likely to provide substantial momentum for the USD/CAD pair. As the market approaches this critical data release, a resurgence of selling pressure on Crude Oil prices is observed, which is likely to weaken the commodity-sensitive Loonie and serve as a supportive factor for the currency pair.