USD/CAD Holds Above 1.3600 as Traders Eye US PCE and Canadian GDP Data

USD/CAD Holds Above 1.3600 as Traders Eye US PCE and Canadian GDP Data

The USD/CAD pair is trading slightly higher near 1.3610 during Friday’s European session after recording a near 1% drop for the week. The US Dollar (USD) is staging a mild recovery following broad losses triggered by weak US economic data and increased expectations of interest rate cuts by the Federal Reserve (Fed) in the coming months.

Key Drivers in Focus:

• US PCE Inflation Report (May):
  The market awaits the release of the Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred inflation gauge, for signs of cooling inflation. A soft print may accelerate USD losses.
• Canada GDP (April):
  Canada’s Gross Domestic Product (GDP) is expected to show that economic growth stalled in April. If confirmed, this could weigh on the Canadian Dollar (CAD) and offer some upside to USD/CAD.

Quick Snapshot:

• Current Price: 1.3610
• Weekly Change: -0.90%
• Support Zone: 1.3600 → 1.3539
• Resistance: 1.3682 (9-day EMA)

Outlook:

The USD/CAD pair remains under short-term pressure, but technical support at 1.3600 is being defended for now. A sharp move may follow once the US PCE inflation and Canada GDP figures are released later today.

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