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USD/CAD holds below mid-1.4000s as US data focus builds

Attention turns to US Q2 GDP and the PCE Price Index, with oil dynamics and Fed-hike expectations shaping near-term USD/CAD trading.

Reported · Written up by our desk · Major Pairs

The USD/CAD pair is consolidating below the mid-1.4000s in Thursday's Asian session, remaining close to an over one-week trough hit the previous day, according to FXStreet.

FXStreet said the near-term direction is likely to be driven by US macro releases, including the Advance Q2 GDP report and the PCE Price Index, which could offer further cues on the Federal Reserve's policy path and influence the US dollar.

The outlet noted that expectations of Fed rate hikes by the end of the year, supported by concerns about inflation risks linked to volatile oil prices, are seen favoring the USD.

FXStreet also pointed to geopolitical factors, including escalating US-Iran tensions and statements from President Donald Trump about retaliatory heavy strikes, which the outlet said has supported the USD via safe-haven demand, while the same developments could raise crude oil expectations and help cap USD/CAD by lifting the commodity-linked Canadian dollar.

Latest closeWTI crude $84.41 ▲6.5%

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