- Q1 GDP growth in the U.S. comes in at 3.1% as expected.
- US Dollar Index continues to float above 98.
- WTI trades calm near $59 ahead of weekly EIA data.
With the commodity-sensitive loonie coming under heavy selling pressure yesterday, the USD/CAD pair advanced to its highest level of 2019 at 1.3545. Following this impressive rally, the pair seems to be staging a technical correction on Thursday and was last seen trading at 1.3490, losing 0.2% on a daily basis.
Earlier in the session, the U.S. Bureau of Economic Analysis in its second estimate said that the real GDP in the U.S. in the first quarter was expected to expand by 3.1% on a yearly basis to match the market expectation. Other details of the report revealed that the core Personal Consumption Expenditures came in at 1% to fall short of the analysts’ estimate of 1.3% but didn’t have a negative impact on the greenback.
The US Dollar Index, which closed the first three days of the week in the positive territory, continued to push higher and was last up 0.12% on the day at 98.25.
On the other hand, crude oil prices are staying relatively quiet ahead of the weekly EIA data from the U.S. and allow the greenback’s market valuation to drive the pair’s price action. At the moment, the barrel of West Texas Intermediate is virtually unchanged on a daily basis at $59.
Later in the day, Bank of Canada Deputy Governor Wilkins’ speech will be looked upon for fresh impetus.
Key levels to watch for
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