USD/CAD: Canada’s economy expanded as expected in April


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD declined 0.23% against the CAD and closed at 1.2963 on Friday.

The Canadian Dollar gained ground, after Canada’s gross domestic product (GDP) rose 0.2% on a monthly basis in April, at par with market expectations, increasing the likelihood of an interest rate hike later this month. In the prior month, the GDP had recorded a rise of 0.5%. Additionally, on an annual basis, the economy expanded 3.3% in April, advancing at its fastest pace in three years. Markets were anticipating the GDP to climb 3.4%, compared to an advance of 3.2% in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.2984, with the USD trading 0.16% higher against the CAD from Friday’s close.

The pair is expected to find support at 1.2954, and a fall through could take it to the next support level of 1.2924. The pair is expected to find its first resistance at 1.3007, and a rise through could take it to the next resistance level of 1.3030.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

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