The USD/CAD pair is holding steady near 1.3705 on Thursday. US Durable Goods Orders saw a significant increase of 2.6% in March, surpassing the previous reading of 0.7%. However, Canada’s February Retail Sales data is pointing towards a potential rate cut by the Bank of Canada in June. The US Federal Reserve is expected to lower its Fed Funds Rate in September 2024, with a 70% chance, according to the CME FedWatch Tool. The recent data shows that the US economy is performing well, while Canada’s Retail Sales have been weaker than expected. This has put pressure on the Canadian Dollar (CAD) against the US Dollar (USD). The decline in crude oil prices, combined with the disappointing retail sales data, is further weighing on the CAD. Investors are now looking ahead to the US preliminary Gross Domestic Product (GDP) Annualized data, which is expected to grow by 2.5% in Q1. The Fed’s current stance on interest rates is also influencing the USD/CAD pair, with the US Dollar gaining support against the CAD.
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