The USD/CAD pair attracts some buyers on Thursday and, for now, seems to have snapped a two-day losing streak to a more than one-week low, around the 1.4025-1.4020 area touched the previous day.
Spot prices currently trade around the 1.4060 zone, up 0.10% for the day, as traders look to important US macroeconomic releases for a fresh impetus
Thursday’s US economic docket features the Advance Q2 GDP report and the Personal Consumption Expenditures (PCE) Price Index. The crucial data will influence market expectations about the US Federal Reserve’s (Fed) future policy path amid bets for at least one rate hike by the end of this year. The outlook, in turn, will drive the US Dollar (USD) demand and produce some meaningful trading opportunities around the USD/CAD pair.
In the meantime, rapidly changing inflation dynamics due to volatile energy prices back the case for a more hawkish US central bank. This, along with escalating US-Iran tensions, helps the USD to regain some positive traction following the previous day’s post-FOMC decline. In fact, the US military launched fresh strikes against Iranian targets in response to surprise missile attacks on American forces based in the Middle East on Tuesday.