- USD/CAD attracts buyers for the sixth day in a row among the ongoing USD recovery.
- Fears of Trump tariffs and softer oil prices are additionally undermined by Loon.
- Traders are waiting for PCE data in the USA before placing fresh directional plants.
The USD/CAD pair is based on a breakthrough momentum on the previous day above the 50-day straight movable average (SMA) and gains positive adhesion on the sixth next day on Friday. Momentum raises point prices to an almost four-week peak, around the area 1.4450-1.4455 during an Asian session, and is sponsored by the buyer of the American dollar (USD).
The second reading of the American gross domestic product (GDP) published on Thursday showed that inflationary pressure is still growing. In addition, the fears that the policy of US President Donald Trump would revive inflation suggests that the federal reserve (FED) will stick to her hawk position. This helps the USD (DXY) indicator, which follows Greenback against the currency basket, in regeneration extending this week from over a two -month low level and acts as a wind on USD/CAD pairs.
In addition, concerns related to economic falling from Trump’s tariff plans weigh the Canadian dollar (CAD), and also support currency pair. In fact, Trump confirmed that his proposed tariffs for Canada and Mexico will enter into force on March 4 as planned. This, along with the modest slowdown in oil prices, undermines Loon connected by the goods and provides an additional elevator to the USD/CAD pair. Traders, however, seem to be reluctant to have the key data of inflation in the USA.
The US personal consumption price indicator (PCE) is later issued at the early North American session and will affect the FED interest rates. This, in turn, plays a key role in driving USD demand in the near future. In addition, the dynamics of oil prices can provide low -term commercial capabilities around the USD/CAD pair on the last day of the week. Nevertheless, the spot prices remain on the right path to a positive note in the second in a row of the week.
