The U.S. Dollar is trading higher against the G10 basket since yesterday and all eyes today will be on the U.S. GDP growth for the second quarter. The Canadian dollar fell sharply on the back of Bank of Canada Governor’s Poloz comments and pushed the USD/CAD pair higher, hitting our target. On the other side, the EUR/USD pair posted another red day and slipped slightly lower from our recommended level.
Greenback ended the day sharply higher against all the major currencies but by the end of the trading session, the U.S. dollar had given up some of those gains. During his speech, yesterday, President Donald Trump proposed the biggest U.S. tax overhaul in three decades, offering to cut taxes for most Americans. Moreover, the durable goods orders, ticked higher by 1.7% in August, versus the forecast of 1.0%. The attention today will turn to U.S. GDP growth for the second quarter, which is predicted to come in line with the preliminary figure at 3% annualized.
The best performing currency pair on Wednesday was the U.S. dollar versus the Canadian dollar, which surged sharply on the back of Bank of Canada Governor Poloz’s comments. The head of Bank of Canada referred that there is no predetermined path for Canada interest rates as inflation and wage growth is slower than they anticipated. So, the plan is to proceed more cautious, which means will be no rate hike in October and a lower chance of tightening in December. Those comments were enough to drive the USD/CAD pair towards the 1.2482 price level yesterday.
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