The Canadian dollar was trading flattish on Thursday and the USDCAD pair was hovering slightly above the 1.29 mark during the London session, waiting for the GDP data.
The monthly change of the Canadian economic output is projected to stay at 0.1% and since this would be a very weak growth, the Loonie might be vulnerable after the release.
From the US dollar perspective, personal spending and income numbers are due and should stay at previous levels. Additionally, the usual Thursday’s jobless claims will be released.
Oil is back at this year’s highs and is trading around 65 USD a barrel, but this has failed to boost the Canadian dollar so far and it appears the correlation has broken recently.
The USDCAD pair is hovering near 1.29, where previous highs are located. So far, volatility has been lower this week. The next support is seen slightly above the 1.28 level and if broken, the pair might decline toward the 100 day moving average below 1.27.
On the other hand, the resistance is at the psychological level of 1.30 and if broken, the greenback could strengthen to the current cycle highs near 1.31. In all cases we strongly recommend to have rigorous money and risk management.
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