USD/CAD: Canada’s economy rebounded in May


USDCAD Movement

For the 24 hours to 23:00 GMT, the USD declined 0.19% against the CAD and closed at 1.3395 on Friday.

On the data front, Canada’s gross domestic product climbed 4.5% on a monthly basis in May, more than market expectations for a rise of 3.5% and compared to a revised plunge of 11.7% in the earlier month. Additionally, building permits jumped 6.2% on a monthly basis in June, compared to a revised surge of 21.6% in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.3402, with the USD trading 0.05% higher against the CAD from Friday’s close.

The pair is expected to find support at 1.3371, and a fall through could take it to the next support level of 1.3339. The pair is expected to find its first resistance at 1.3435, and a rise through could take it to the next resistance level of 1.3467.

In absence of any macroeconomic releases in Canada today, investor sentiment would be governed by global macroeconomic factors.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

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