Canada’s economy contracted by 1.6% annualized in Q2 2024, surprising economists and fueling recession fears. Weaker consumer spending, a cooling housing market, and inventory drawdowns drove the decline. The Bank of Canada may delay rate hikes or consider cuts as growth stalls and inflation remains a concern.
The Dow Jones Industrial Average fell nearly 0.5% after July’s Core PCE inflation data surprised markets by rising faster than expected. Sticky inflation raises doubts about the timing of Federal Reserve rate cuts, igniting volatility across equities and bonds. Investors are recalibrating policy outlooks amid persistent price pressures.
Dow Jones slides over 250 points as July’s hotter-than-expected PCE inflation data signals persistent price pressures. Elevated inflation raises odds of prolonged Fed tightening, dimming hopes for near-term rate cuts and spooking equity markets.
USD/CAD is completing a five-wave Elliott impulse from the Jan 2025 low, advancing toward 1.3760. Wave 5 may be an ending diagonal, signaling potential trend exhaustion. Watch for a corrective phase supported by fundamentals like inflation and oil prices. #Forex #ElliottWave
US Dollar steady near 104 ahead of critical PCE inflation data release. Markets cautious as investors await Fed’s preferred inflation gauge to gauge the outlook for monetary policy. Inflation surprises could drive volatility and influence USD direction in coming sessions.
USD/CAD faces heightened bearish reversal risks as technicals show a breakdown below key support near 1.3600, while fundamentals—dovish Fed signals, strong Canadian labor data, and recovering oil prices—favor the loonie. Watch for further downside toward 1.3480 and 1.3350 if selling pressure persists. Market uncertainty remains elevated heading into the new week. #Forex #USDCAD #TechnicalAnalysis
As growth divergence widens between the U.S. and Canada, USD/CAD faces mounting pressure. With the U.S. economy showing resilience and the Federal Reserve staying hawkish, while Canada’s growth slows and the Bank of Canada leans dovish, could a major shift in the currency pair be on the horizon?
As US growth outpaces Canada’s and the Fed maintains higher rates while the Bank of Canada eases, the USD/CAD pair gains momentum. Traders should watch inflation trends, interest rate divergence, and commodity prices closely as these fundamentals shape the currency’s near-term outlook.
With the U.S. economy showing resilience amid steady Fed rates and Canada signaling potential rate cuts due to slowing growth, the widening growth spread could weigh on the Canadian dollar. Traders should watch how these diverging trends shape the USD/CAD trajectory in the coming months.
USD/CAD retreated from its daily high near 1.3770 to around 1.3734 amid mixed U.S. and Canadian economic data, fluctuating crude oil prices, and cautious dollar sentiment. Technical outlook suggests consolidation below resistance, with market participants closely watching Fed signals and commodity trends for the next move. #Forex #USD CAD
