The first look at US GDP for Q3 beat expectations, coming in at 2.6%. Following two straight quarters of negative growth, Thursday’s reading suggests that the US has rebounded out of a technical recession.
However, speculation surrounding next week’s FOMC Meeting remains unchanged with markets still widely expecting another 75bps rate hike.
Concerns over a slowing American economy coupled with persistent inflation have begun to weigh on the greenback recently. Looking at USD/CAD, the pair did manage to bounce from a confluence of support around 1.3500 yesterday. But whether it can build on this move, or retests a break lower, remains to be seen.
With focus now on Friday’s PCE Price Index, where could USD/CAD be headed next?
Check out this article for an in-depth technical analysis on the pair: