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USD/CAD registered minuscule losses on Thursday in a session that witnessed the US Dollar as the strongest currency, which rose on better-than-expected US economic data which failed to boost the USD/CAD. The USD/CAD is trading at 1.3249 after hitting a high of 1.3285.
Despite late Thursday’s corrective rally from multi-day low to about $1,908 during the early hours of Friday’s Asian session, gold price licks its wounds at the lowest levels in three months and maintains a pessimistic stance.
Gold fell to its lowest level since March 15 before rebounding off $1,893 in response to positive market mood the day before and good US data and hawkish Federal Reserve (Fed) comments.
As a result, traders continue to watch the US Core Personal Consumption Expenditure (PCE) Price Index data, the Fed’s preferred inflation indicator, for guidance. However, the quote is currently poking the critical support. The preliminary readings of China’s NBS Manufacturing PMI and Non-Manufacturing PMII, as well as the speeches of central bankers, are also significant to follow.
Economic Data
Key economic indicators of the US economy pushed aside recession fears that reignited during the last week. The US Gross Domestic Product (GDP) for the first quarter exceeded the prior’s reading of 1.3%, climbed past the 2% market, crushing estimates, sending US Treasury bond yields soaring more than ten basis points.
Additional data revealed the tightness of the labor market, as Initial Jobless Claims for the week ending June 24 climbed by 239K, below forecasts of 265K, and halted three weeks of rising unemployment claims, suggesting the labor market remains solid, ahead of the following week’s June Nonfarm Payrolls report.
Also Read:
Dollar Index Surges On upbeat US data
Treasury Yields Surge As Traders Favour More Fed’s Hikes
Fed’s Bostic: Inflation has fallen
Gold resilient despite Fed’s rate hike expectation, solid US data
Crude oil loses momentum on stronger dollar
