USD/CAD – U.S. GDP Fell Short Of Expectation

#OPINIONLEADER# #Signal#

 JUL 30, 2021

• U.S. advance GDP for Q2 (Actual 6.5% vs. Forecast: 8.5%)
• Potential downside in USD/CAD

Chart 1: USD/CAD D1 chart

The U.S. Bureau of Economic Analysis reported economic growth during the second quarter to be 6.5%, slightly higher than the first quarter of 6.4%. However, the GDP data was way below the market’s expectation of 8.5%. As a result, USD weakened briefly against the other major currencies.

Together with the recent weakening of USD after the FOMC meeting, USD/CAD may be weakened further. At the moment our technical indicators are also indicating signs of downward momentum. Look for selling opportunities of USD/CAD after it breaks below the 1.24 handle.

Trade Setup for USD/CAD (D1)

Sell Stop at 1.2370

Upcoming major news that may impact price movement of USD/CAD

30 July – Canadian GDP m/m data release at 2030 (GMT+8)

30 July – U.S. Core PCE Price Index m/m data release at 2030 (GMT+8)

31 July – FOMC committee member Brainard speaking at 0830 (GMT+8)

02 August – U.S. ISM Manufacturing PMI data release at 2200 (GMT+8)

04 August – U.S. ISM Services PMI data release at 2200 (GMT+8)

06 August – Canadian jobs report release at 2030 (GMT+8)

06 August – U.S. jobs report release at 2030 (GMT+8)