USD/CAD: Canadian economic growth accelerated in May


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD declined 0.88% against the CAD and closed at 1.2440 on Friday.

The Canadian Dollar gained ground, following robust Canadian GDP figures.

Data indicated that Canada’s GDP sharply expanded by 0.6% on a monthly basis in May, highlighting that the nation is on a robust growth path and boosting expectations that the Bank of Canada will raise interest rates again. The nation’s GDP had risen 0.2% in the previous month, while investors had envisaged it to climb 0.2%. Also, on an annual basis, the GDP recorded a more-than-expected rise of 4.6% in May, after recording an expansion of 3.3% in the previous month.

In the Asian session, at GMT0300, the pair is trading at 1.2470, with the USD trading 0.24% higher against the CAD from Friday’s close.

The pair is expected to find support at 1.2404, and a fall through could take it to the next support level of 1.2338. The pair is expected to find its first resistance at 1.2552, and a rise through could take it to the next resistance level of 1.2634.

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

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