USD/CAD Drops to Fresh 10-Month Lows
USD/CAD broke
below 1.2510 (yesterday’s low) and fell to 1.2498 hitting the lowest
level since July 1. Price remains near the lows, testing the 1.2500 area
and holding a bearish tone.
The pair is falling for the fourth
day in a row on the back of a weak US dollar across the board and also
amid a rally in crude oil prices. The WTI barrel is up 1.15%, trading
above $46.50. Greenback is the worst performer in the currency market
again.
Data ahead
At 12:30 GMT relevant economic data from Canada will be release with GDP data from February, that is expected to show a growth rate of around 0.0% and -0.1%.
“Since
January, economic data has softened considerably, though the strength
in the retail sector should provide an offset to manufacturing.
Commodities will likely suffer a pullback, as evidenced by lower railcar
shipments and weaker US imports. Despite the weakness in February data,
TD is still tracking north of 3% for Q1 though we expect some strength
is being pulled forward from Q2,” wrote analysts from TD Securities.
In
the US the key report will also be published at 12:30 GMT with the
personal income and spending report, later at 14:00 GMT will be the turn
of the Consumer Confidence index from the University of Michigan /
Reuters.
