The USD/CAD has fallen to the bottom of its daily range, after which Canadian GDP was released, but then came a quick recovery. Friday’s data showed that the Canadian economy grew 0.1% on a monthly basis in October. On an annualized basis, quarterly growth was 1.3% ahead of the 1.2% forecast, which was the only factor driving downward pressure.
Despite the slightly better than expected reading of the quarter’s growth, it still came to a decline of 3.7% previously. In addition, there are slightly weaker oil prices, which deprive demand from commodity currencies such as Loonie. Demand for the greenback has risen as US yield behavior has developed, but this has limited downside momentum.
Overall, the pair has been within its range for more than a week, around the very important 200-day SMA. Therefore, it would be advisable to wait for a sustainable break from this range before positioning yourself for either direction.