USD / CAD fell to a new weekly low below 1.2540 on Wednesday.
The US dollar index falls towards 93.00 during the American session.
The Canadian economy grew more than expected in January.
The USD / CAD pair remained relatively quiet around 1.2600 for the first half of the day, but was under heavy downward pressure in the early trading hours of the US session on Thursday. However, after falling to its lowest level in a week at 1.2537, the pair experienced a modest rebound and was last seen shedding 0.54% on the day at 1.2566.
DXY falls towards 93.00
Widespread USD weakness and renewed CAD interest following strong data weighed heavily on USD / CAD on Thursday.
The positive change in market sentiment hit the dollar on Thursday. With the major Wall Street indices opening the day higher, the US Dollar Index (DXY) extended its daily decline and briefly fell below 93.00. At time of writing, the DXY is losing 0.2% to 93.11.
In its monthly report, the Automatic Data Processing Research Institute (ADP) announced that private sector employment increased by 517,000 in March. This reading fell short of the market expectation of 550,000 and did not help the USD gain strength.
On the other hand, data released by Statistics Canada showed on Wednesday that the real Gross Domestic Product (GDP) in January grew by 0.5%. The upbeat growth data helped the loonie outperform its rivals.
Later in the session, US President Joe Biden will unveil his infrastructure plan, which is reported to contain an investment worth $ 2 trillion over eight years.
Technical levels
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