USD/CAD rebounds as investors adopt caution ahead of US PCE on Friday.
The decline in the US Treasury yields could limit the advance of the US Dollar.
Canada’s GDP Annualized is expected to expand by 2.2% in the first quarter.
USD/CAD halts its recent losses, trading around 1.3690 during the Asian session on Friday. US Dollar (USD) rebounds ahead of the Federal Reserve’s preferred inflation gauge, the Core Personal Consumption Expenditures (PCE) Price Index, which will be released on Friday.
US Gross Domestic Product (GDP) Annualized growth rate was revised lower to 1.3% from 1.6% for the first quarter, prompting investors to adjust the Federal Reserve’s (Fed) policy outlook to loosen. This causes uncertainty about a September rate cut. Additionally, the US weekly Initial Jobless Claims for the week ending May 2 rose to 219K from the previous week of 216K, above the market consensus of 218K.
The decline in the US Treasury yields could limit the advance of the US Dollar. US Dollar Index (DXY), which measures the value of the US Dollar (DXY) against six other major currencies, trades higher around 104.80 with 2-year and 10-year yields on US Treasury bonds standing at 4.92% and 4.54%, respectively, by the press time.
In Canada, expectations for June rate cuts by the Bank of Canada (BoC) have waned due to recent data indicating ongoing price pressures. In April, producer prices surged by 1.5% from the previous month, following a 0.9% increase in March, nearly doubling the anticipated 0.8% change. Interest rate futures now show that only 34% of the market is expecting a 25-basis point rate cut at the BoC’s June meeting, down from 46% a week ago.
On Friday, Statistics Canada will release the country’s Gross Domestic Product (GDP) data. The annualized figure for the first quarter is expected to show a 2.2% expansion, up from the 1.0% growth recorded in the previous quarter.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : FXStreet – https://www.fxstreet.com/news/usd-cad-rises-toward-13700-ahead-of-us-pce-canadas-gdp-202405310300
