Forex: USD/CAD falls into negative territory after Canadian/US GDP

FXstreet.com (Barcelona) - The USD/CAD has careened off the 0167 handle during American trading following the release of Canadian and US data Thursday. The pair subsequently erased its gains and plunged into negative territory on the release and is now trading at 1.0153/54 in these moments, down -0.12%.

In Canada, Gross Domestic Product (MoM) has yielded a result of +0.2% in January, beating expectations of +0.1%. Meanwhile in the United States, the Gross Domestic Product Index (Q4) has yielded a result of +1.0%, exceeding estimates of +0.9%. Finally, Gross Domestic Product Annualized (Q4) was reported at +0.4%, vs. a projected +0.4%.

According to the TD Securities Team, “The USD/CAD losses have stalled somewhat over the past 24 hours, remaining in consolidation mode just above key short-term support at the 40-day moving average at 1.0160. With the loss of key trend support in the upper 1.01 area earlier this week, a test of 1.01 looks to be in the cards now in the coming weeks, before the longer term bull trend can resume. Intraday, a push below 1.0155 would find minor support near 1.0140, before the more solid 1.0100 area.”