USD/CAD - Dollar Traders Digest GDP Figures

Canadian Gross Domestic Product for May was expected at 0.2% on m/m growth; expansion increased to 0.6% for the month while y/y jumped to 4.6% from 4.2%. The Canadian dollar, which has been on a major win streak against its counterparts after an interest rate hike this month, is climbing against the U.S. dollar after the data.

Growth is seen across Europe with GDPs in expansion mode the U.S. second-quarter GDP came in at 1.0% while previous was 2.0%. With equities at all-time highs and a slew of earnings reported yesterday, the greenback had gained against its G7 counterparts. With the current GDP figures having just been released, the dollar reversed previous gains and is under more pressure. At 10 a.m. we will have Michigan Consumer Sentiment and expectations are for 93.1 same as previous.

Experts expect a range today of $1.2407 to $1.2541

An overall strong day on the fundamental front for Europe today as all data mainly exceeded expectations. German Consumer Price Index exceeded expectations in July as it released at 0.4% m/m and 1.7% y/y. French GDP hit the mark on a quarter to quarter basis at 0.5%, but on a year to year basis it exceeded expectations and printed at 1.8%. Euro-zone Confidence is strong in July as Consumer, Services, Industrial and Economic exceeded expectations. The euro is currently trading at $1.4607.

Observers expect a range today of $1.4555 to $1.4673

No event risks out of the U.K. today, leaving the sterling to trade on broader sentiments. Next week, the Bank of England will have its policy meeting, which they are expected to leave rates on hold at 0.25%, and they will release its Inflation Report. The focus will be on future guidance of its interest rate path. The pound is currently trading at $1.6307.

Commentators expect a range today of $1.6261 to $1.6366

The Australian dollar is recovering from yesterday’s losses on the back of upbeat Australian data and commodity prices. Australian Producer Price Index YoY released overnight rose to 1.7% in Q2 from the previous 1.3%, while higher copper prices also added further support to the commodity currency. The Aussie-U.S.-dollar pairing rebounded from its low overnight and is looking to test resistance level at $0.8000.

Oil (WTI): $49.23 U.S. per barrel

Gold: $1,263.11 U.S. per ounce

Silver: $16.65 U.S. per ounce

Copper: $2.872 U.S. per tonne

Dollar Index: 93.53

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