- Canadian economy expanded at a softer pace than expected in September.
- US Dollar Index recovered modestly following today’s inflation data.
- WTI continues to trade in the negative territory below $55.
The USD/CAD pair failed to break out of its daily range following the macroeconomic data releases from the United States and Canada on Thursday. As of writing, the pair was virtually unchanged on the day at 1.3156.
Canadian economy struggles to gather momentum
Earlier in the day, Statistics Canada reported that the real Gross Domestic Product (GDP) in August expanded 0.1% after staying flat in July. “On a three-month rolling average basis, real gross domestic product rose 0.5% in August, compared with a 0.8% increase in July,” the press release read.
On the other hand, the US Bureau of Economic Analysis’ publication revealed that the core Personal Consumption Expenditures (PCE) Price Index rose 1.7% on a yearly basis in September and matched analysts’ expectation. Further details of the publication showed personal income and personal spending increased by 0.3% and 0.2%, respectively, on a monthly basis.
The US Dollar Index, which closed the previous day 0.25% lower pressure by the FOMC Chairman Powell’s remarks, recovered slightly in the early trading hours of the American session and was last down 0.1% on the day at 97.35.
Meanwhile, the barrel of West Texas Intermediate is trading below $55, losing nearly 1% on the day to make it difficult for the commodity-sensitive CAD to outperform the USD.
Technical levels to watch for
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