By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Gulf PressGulf Press
  • Home
  • Gulf News
    • Saudi Arabia
    • UAE24/7
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • World
  • Business
    • Market DataLive
    • Finance
    • Economy
    • Energy
    • Crypto
    • ForexHot
    • Tech
  • Sports
  • Lifestyle
  • Videos
Search
Countries
  • Saudi Arabia
  • UAE
  • Kuwait
  • Qatar
  • Bahrain
  • Oman
More Topics
  • Technology
  • Health
  • Entertainment
  • Crypto
  • Forex
  • Stocks
Site Links
  • Business Hub
  • Trending
  • Weather
  • Customize Interests
  • Bookmarks
  • Newsletter
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Reading: The Canadian Dollar continues to struggle in the aftermath of GDP data
Share
Notification Show More
Recent Saved
Workers in Bucharest face challenges as temperatures rise
World
Dress code guidelines for the Qatari government sector during office hours
Qatar
Court rules in favor of worker after company dismisses him for salary deductions over 6 years, awarding BD 27,000.
Bahrain
UAE to See Almost 30,000 New Millionaires in 5 Years
UAE
Proposed New Labor Law in Bahrain Targets Increasing Job Opportunities
Bahrain
Latest News
UAE Ranks Among Top Rugby Markets on TOD as British & Irish Lions Tour Kicks Off
Sports
Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World
Tech
Beat the Heat This Summer with a Chill Out on Dubai Marina
World
Historic Italian City of Assisi to Host International Exhibition “Jordan: Dawn of Christianity”
World
Jordan to Host Iraq in the Final Round of the Asian World Cup Qualifiers After Securing Historic Spot
Sports
The Myriad Redefines Student Living for a Mobile, Urban Generation
UAE
L’Oréal Paris Welcomes Yasmine Sabri as New Brand Ambassador for the Middle East
Lifestyle
Roland Garros 2025: A New Era of Viewing, A Tribute to Legends, and Moments to Remember
Sports World
Bitget Celebrates Bitcoin Pizza Day by Distributing Over 5000 Pizzas in Over 20 Cities Worldwide
Crypto
Bitget Protection Fund Maintains Strength with $561 Million Average Value in April 2025
Business Crypto
Aa
Gulf PressGulf Press
Aa
  • Gulf News
  • World
  • Business
  • Entertainment
  • Lifestyle
  • Sports
  • Videos
Search
  • Home
    • Videos
    • Business Hub
    • Trending
  • Gulf
    • Saudi Arabia
    • UAE
    • Kuwait
    • Qatar
    • Bahrain
    • Oman
  • Business
    • Market Data
    • Crypto
    • Economy
    • Energy
    • Finance
    • Forex
    • Tech
  • More News
    • World
    • Lifestyle
    • Entertainment
    • Sports
Have an existing account? Sign In
Follow US
  • Terms
  • Press Release
  • Advertise
  • Contact
© 2023 Gulf Press. All Rights Reserved.
Gulf Press > Business > Forex > The Canadian Dollar continues to struggle in the aftermath of GDP data
Forex

The Canadian Dollar continues to struggle in the aftermath of GDP data

News Room
Last updated: 2024/10/31 at 4:52 PM
News Room
Share
4 Min Read
SHARE

The USD/CAD pair saw an increase on Thursday as the United States Personal Consumption Expenditures (PCE) Price Index from September and weekly US Jobless Claims both came in better than expected. This uptick saw the Canadian Dollar weaken following the Bank of Canada’s recent decision to aggressively cut interest rates by 50 basis points. With flat economic growth in Canada and anticipation of further rate cuts by the BoC in December, the CAD remains under pressure. This dovish sentiment has been further fueled by soft GDP data released recently.

The flat economic performance in Canada has been a key factor driving the weakness in the Canadian Dollar. With GDP remaining stagnant in August and growing only by 0.1% in July, the market expects the BoC to further lower interest rates in December. On the other hand, the US economy saw steady growth in the US PCE, which increased by 2.1% yearly, slightly down from September’s 2.2%. Core inflation in the US remained at 2.7%, above market consensus expectations of 2.6%. Additionally, the US Jobless Claims unexpectedly fell to 216K for the week ending October 25, indicating a strong labor market.

Moving forward, economists estimate a job creation figure of 113K in the upcoming October Nonfarm Payrolls report, lower than the previous month’s 254K. The Unemployment Rate is projected to remain steady at 4.1%. The technical outlook for the USD/CAD pair suggests that the pair is currently trading sideways with a bullish bias. The RSI is indicating an overbought market, with strong buying pressure, while the MACD is flat, suggesting a possible consolidation period in the near future.

Factors that drive the value of the Canadian Dollar include the level of interest rates set by the BoC, the price of oil, Canada’s largest export, the health of its economy, inflation, and the Trade Balance. The BoC plays a significant role in influencing the CAD through interest rate decisions and monetary policy. Higher interest rates are generally positive for the CAD. The price of oil also has a direct impact on the CAD, as it is Canada’s biggest export. Higher oil prices tend to boost the CAD value, while lower prices have the opposite effect.

Inflation, contrary to traditional beliefs, can actually have a positive impact on the CAD in modern times. Higher inflation rates may lead central banks to raise interest rates, attracting more capital inflows from global investors and increasing demand for the CAD. Macroeconomic data releases such as GDP, employment figures, and consumer sentiment surveys also play a role in influencing the direction of the CAD. A strong economy is beneficial for the Canadian Dollar, attracting foreign investment and potentially leading to higher interest rates, strengthening the currency. On the other hand, weak economic data can lead to a decline in the CAD.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
I have read and agree to the terms & conditions
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
News Room October 31, 2024
Share this Article
Facebook Twitter Copy Link Print
Previous Article Doha hosts conclusion of International AI Conference on Homeland Security and Safety
Next Article HONOR introduces pre-order for the impressive HONOR MagicBook Art 14
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

235.3k Followers Like
69.1k Followers Follow
56.4k Followers Follow
136k Subscribers Subscribe
- Advertisement -
Ad imageAd image

Latest News

UAE Ranks Among Top Rugby Markets on TOD as British & Irish Lions Tour Kicks Off
Sports July 6, 2025
Darven: A New Leap in AI-Powered Legal Technology Launching from the UAE to the World
Tech July 1, 2025
Beat the Heat This Summer with a Chill Out on Dubai Marina
World July 1, 2025
Historic Italian City of Assisi to Host International Exhibition “Jordan: Dawn of Christianity”
World June 28, 2025

You Might also Like

Forex

Pound Sterling Price Update and Prediction: GBP strengthens as risk sentiment improves

January 6, 2025
Forex

Elliott Wave Technical Analysis of NVIDIA Corp. (NVDA) [Video]

January 6, 2025
Forex

EUR/USD: Is it a Dead Cat Bounce? – OCBC

January 6, 2025
Forex

AUD/JPY maintains gains around 98.50 following PMI data release

January 6, 2025
Forex

NZD/USD edges up to nearly 0.5650 after China’s Caixin Services PMI

January 6, 2025
Forex

Japanese Yen bulls stay on the sidelines as USD/JPY remains steady above the mid-157.00s

January 6, 2025
Forex

Silver Price Prediction: XAG/USD bears in control below $30.00 near 200-day SMA

January 6, 2025
Forex

Gold price drops from multi-week high due to hawkish Fed expectations

January 6, 2025
//

Gulf Press is your one-stop website for the latest news and updates about Arabian Gulf and the world, follow us now to get the news that matters to you.

Quick Link

  • Privacy Policy
  • Terms of ue
  • Advertise
  • Contact

How Topics

  • Gulf News
  • International
  • Business
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our latest news instantly!

I have read and agree to the terms & conditions
Gulf PressGulf Press
Follow US

© 2023 Gulf Press. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

I have read and agree to the terms & conditions
Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?