USD/CAD - Canadian Dollar Under Pressure

The U.S. Gross Domestic Products for the seconnd quarter saw annualized growth of 3.0% which was much better than expectations of 2.7%. Personal Consumption also jumped to 3.3% from a previous reading of 2.8%. Later today investors will consider Crude Oil Inventories and Gasoline Inventories.

U.S. equities are trading softer which has Treasuries moving higher and fueling the U.S. dollar against most of the G10 currency, barring the euro. ADP Employment Change proved well above expectation of 185,000, printing at 237,000. On Friday, investors will ponder Non-farm Payrolls from the U.S. Department of Labor.

The Canadian dollar continues to be under pressure from its trading peers. With crude oil bears taking the price of crude oil lower, the petrol currency is under extreme pressure against the greenback. WTI Crude is trading at $45.96 U.S. per barrel, or 1.0% lower than yesterday's close. Canada will release its GDP figures tomorrow, and the expectation is flat in the second quarter annualized at 3.7%, and YoY for June expectation is 4.1%, denoting a drop in growth from the previous release of 4.6%.

The euro-U.S. dollar pairing is under some selling pressure today after the release of softer data from the euro-zone. Spanish Flash Consumer Price Index data missed the target at 1.6% against the forecast of 1.7%. German advance CPI data also added to the selling pressure where market watchers saw inflation come in as expected at 0.1%, which fell from the previous month’s figure of 0.4%.

The pound is under selling pressure today on mixed domestic data. Net individual data missed forecasts while mortgage approval data was better than expected. Combined with positive U.S. data this morning, the sterling is likely to remain soft.

The Australian dollar is trading lower this morning after its pairing with the greenback rejected the key psychological resistance level at $0.8000 overnight. The pair jumped to test the $0.8000 level after the release of upbeat Australian housing data but failed to sustain the upside momentum as it returns all of its earlier gains by North American open this morning. Softer metal prices, especially copper is also dampening the sentiment around the commodity currency.

Oil (WTI): $46.08 U.S. per barrel

Gold: $1,309.20 U.S. per ounce

Silver: $17.42 U.S. per ounce

Copper: $309.55 U.S. per tonne

Dollar Index: 92.73


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