- Real economy in the United States (US) expanded by 2% in the second quarter.
- US Dollar Index fell below the 99 handle after the data.
- Crude oil remains under pressure for the third straight day.
After spending the first half of the day moving sideways near the 1.3250 handle, the USD/CAD pair came under a renewed pressure in the last hour as the Greenback struggled to preserve its strength following the gross domestic product (GDP) data from the United States. As of writing, the pair was trading at 1.3242, losing 0.18% on a daily basis.
Gloomy data hurt the USD
In its third estimate, the US Bureau of Economic Analysis reported that the real economy expanded by 2% in the second quarter. Although this reading matched the previous estimate and the market consensus, the fact that the contribution from business and household investment were revised lower weighed on the Greenback.
The US Dollar Index lost its traction on the data and erased its daily gains. As of writing, the index was down 0.12% on the day at 98.90.
Despite the selling pressure surrounding the USD, the pair’s losses remain limited as falling crude oil prices make it difficult for the commodity-sensitive Loonie to continue to gather bullish momentum. At the moment, the barrel of West Texas Intermediate is losing 1% on the day at $56.05.
Later in the session, St. Louis Fed President James Bullard is scheduled to deliver a speech.
Technical levels to watch for