Post #15205

USD/CAD Climbs as Weak GDP Hits the Loonie USD/CAD bounced strongly after testing the 50% retracement level during Wednesday’s Fed Day and is now climbing toward a key resistance around 1.4050. Price action shows consistent buying momentum off support, with short-term structure remaining bullish. A break and hold above 1.4050 could open the door to retesting the early 2025 highs. The Canadian dollar came under pressure this morning after GDP data missed expectations at -0.3% vs 0.0%, reinforcing concerns of a slowing economy. The BoC’s 25 bps rate cut earlier this week further weighed on CAD sentiment, giving USD/CAD an additional lift. Meanwhile, in the U.S., traders are still digesting Powell’s hawkish comments from Wednesday. Although markets continue to speculate about a possible December Fed cut, the odds remain low as long as the government shutdown delays key economic data releases, leaving the Fed in wait-and-see mode.