USD/CAD still capped at 1.3250, CAD unimpressed by Canadian data

• Canadian GDP grew 0.3% in May.
• US data shows a slowdown in core consumer inflation.
• USD/CAD is trading sideways on Friday, holding close to the levels it was a week ago.

He USD/CAD It fell as far as the 1.3200 zone after the US and Canadian economic data, but then bounced, approaching the key 1.3250 resistance zone. The pair reached weekly highs at 1.3248 but failed to break higher as it continues to move sideways, and is about to end the week unchanged.

Laterality despite the data

Data released on Friday showed Canadian GDP grew 0.3% in May, in line with consensus. Several temporary factors distorted the GDP data for May. While the end of the federal employees’ strike boosted the economy, the wildfires caused a contraction of the energy sector. Excluding these two factors, the Canadian economy grew by 0.4%, better than the main data (0.3%). But this rebound may be short-lived,” explained analysts at the National Bank of Canada.

Turning to US data, the annual index of core personal consumption spending fell from 4.6% to 4.1% in June, weighing on the dollar. Personal income rose 0.3%, below the 0.5% market consensus, and personal spending rose 0.5%, above the 0.4% expected. Report that the employment cost index during the second quarter rose 1%, below the 1.1% expected by the markets.

The dollar fell after the data that pointed to lower inflation. The Dollar Index fell 0.20% on Friday, erasing some of Thursday’s gains. On a weekly basis, the DXY advances and is on track for its second straight weekly gain. Next week, the United States and Canada will report on employment.

USD/CAD remains below 1.3250

USD/CAD is moving with a slight bullish bias, but remains capped by the 1.3250 area. A break to the upside could trigger an acceleration, and the next resistance would be at 1.3290. Key support lies at 1.3150; prior to that level, tentative support appears at 1.3190.

technical levels