USD/CAD Interim Support at 1.3980: A Closer Look
Market Overview
- USD/CAD Support: The USD/CAD pair has found support near 1.3980 in the European session on Friday.
- US Dollar Rebound: The US Dollar is rebounding after hitting a two-week low, with the US Dollar Index (DXY) showing buying interest near 105.60.
Factors Impacting the Market
- Scott Bessent Nomination: The nomination of Scott Bessent for the role of US Treasury Secretary by President-elect Donald Trump has led to a sell-off in the US Dollar.
- Market Confidence: Despite the recent sell-off, market experts remain confident in the US Dollar’s outlook, citing a favorable economic outlook and strong GDP growth.
Canadian Economic Data
Investors are eagerly awaiting Canada’s monthly and Q3 GDP data, set to be released at 13:30 GMT on Friday.
- Q3 GDP Growth: The Canadian economy is expected to have grown by 1% in the third quarter, a slowdown from the previous quarter’s growth rate of 2.1%.
- Interest Rate Expectations: Weak GDP numbers could prompt the Bank of Canada to cut interest rates by 50 basis points in the upcoming monetary policy meeting.
Economic Indicator: Gross Domestic Product (GDP)
The Gross Domestic Product (GDP) is a key economic indicator released by Statistics Canada on a monthly and quarterly basis. It measures the total value of all goods and services produced in Canada during a given period.
The GDP data is expressed at an annualized rate, reflecting the hypothetical growth rate over a year’s time. A high reading is considered bullish for the Canadian Dollar (CAD), while a low reading is seen as bearish.
Key Data Points
- Next Release: Friday, November 29, 2024, at 13:30 GMT
- Consensus Forecast: 1%
- Previous Growth Rate: 2.1%
Overall, the market dynamics between the USD/CAD pair and the upcoming Canadian GDP data present a significant opportunity for investors to monitor and potentially capitalize on the shifting trends in the foreign exchange market.