Canada’s GDP went up by 0.1% in July. Canada’s GDP is still significantly below BoC’s 2% forecast. The BoC might pause rate hikes after October, according to economists. Today’s USD/CAD outlook is bearish as Canada’s economic activity unexpectedly accelerated in July. According to figures from Statistics Canada, the Canadian economy expanded by 0.1% in July as opposed to the 0.1% decline analysts had anticipated. -Are you looking for automated trading? Check our detailed guide- According to economists, the modest increase in July and the expected lack of growth in August point to third-quarter annualized GDP growth of approximately 1%, which is significantly lower than the Bank of Canada’s most recent forecast of 2.0%. “After a solid first half of the year, momentum appears to be slowing as multi-decade-high inflation and rapidly rising interest rates weigh on the economy,” Benjamin Reitzes, Canadian rates and macro strategist at BMO Economics, said in a note. The Bank of Canada raised interest rates by 75 basis points to 3.25% earlier this month to combat inflation, which started to ease in July but is still running at levels not seen in over four decades. Hot inflation suggests that the Bank of Canada will probably raise interest rates at its meeting in late October, but things could change after that, according to experts. “The deceleration in economic momentum is why we see the Bank of Canada only hiking rates once more in October,” Mendes said. USD/CAD key events today Investors are awaiting the US’s Core Personal Consumption Expenditure (PCE) Price Index. It tracks changes in the cost of consumer goods and services, excluding food and energy, purchased for consumption. It is a crucial tool for tracking inflation and shifting purchasing trends. Get FREE Forex Signals Now! USD/CAD technical outlook: Sellers on the brink of breaking below the 30-SMA Looking at the 4-hour chart, we see the price trading at the 30-SMA and the RSI close to 50. The price is trading at a zone where bears are testing the strength of bulls. Bears have become stronger after the price made a double top at the 1.3801 resistance level with a bearish RSI divergence. -If you are interested in forex day trading then read our guide to getting started- This was the first sign of weakness in the uptrend. The second sign is how the price consolidates close to the SMA instead of bouncing and pushing higher. If the bears win, the price will break below the SMA and head for support at 1.3.3525. Looking to trade forex now? Invest at eToro! Trade Forex Now! 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Saqib Iqbal Saqib Iqbal Saqib Iqbal is a market analyst, prop fund trader and mentor, serving the industry with his analysis and educational content since 2011. The author has great exposure to different financial markets and institutions. He's well-known for his day trading reviews and multiple timeframe analysis. View All Post By Saqib Iqbal Majors share Read Next AUD/USD Price Analysis: RBA Expected to Deliver Another 50bps Hike Saqib Iqbal 2 months Canada's GDP went up by 0.1% in July. Canada's GDP is still significantly below BoC's 2% forecast. The BoC might pause rate hikes after October, according to economists. Today's USD/CAD outlook is bearish as Canada's economic activity unexpectedly accelerated in July. According to figures from Statistics Canada, the Canadian economy expanded by 0.1% in July as opposed to the 0.1% decline analysts had anticipated. -Are you looking for automated trading? Check our detailed guide- According to economists, the modest increase in July and the expected lack of growth in August point to third-quarter annualized GDP growth of approximately 1%, which… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.