Canadian Dollar Strengthens on Robust GDP, Eyes US Data

George Solotarov
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Canadian Dollar Strengthens on Robust GDP, Eyes US Data

The Canadian Dollar (CAD) extends gains for a fourth day on Thursday, buoyed by strong January GDP figures and preliminary estimates suggesting sustained economic growth in February. These positive signals bolster the CAD by dampening expectations for immediate rate cuts by the Bank of Canada (BoC).

Meanwhile, in the US, a surprise decline in Weekly Jobless Claims and an upward revision to Q4 GDP failed to significantly bolster the US Dollar. The Greenback retreats from Thursday's strong opening spurred by Fed Governor Waller's hawkish comments.

The US Dollar Index remains largely unchanged ahead of Friday's crucial release of US PCE Prices Index data and a speech by Fed Chair Jerome Powell. Investors are carefully watching for hints on future Fed monetary policy.

Technical Analysis: USD/CAD Bears Gain Momentum

The USD/CAD faces mounting bearish pressure after hitting resistance at 1.3610, now poised to test the 1.3520 support zone. The RSI slipping below 50 signals seller dominance.

While a bullish channel pattern persists, a sustained break below 1.3460 could invalidate this outlook. Key resistance levels reside at 1.3615 and 1.3630.

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