U.S. Expenditure and Canadian GDP
USA:
- Core price index for personal consumption expenditures (m/m) (Jan), fact 0.1%, forecast 0.2%.
- Core price index for personal consumption expenditures (y/y) (Jan), fact 1.8%, forecast 1.9%.
- Personal spending (m/m) (January), fact 0.1%, forecast 0.3%
Canada:
- GDP (m/m) (January), fact 0.3%, the forecast 0.1%.
- Price index for raw materials (RMPI) (m/m) (Feb), fact 4.6%, previous value 4.0%.
Personal spending in the US slowed down in January, confirming market concerns, pointing to a slowdown in consumer inflation and worsening concerns about the US economy. The main concern is that the main growth in profits falls on the wealthy upper class, without actually providing support to the middle class. Expenditures remain at annual lows.
Fig. 1. U.S. Core price index for personal consumption expenditures (y) chart
Also, data on Canada’s GDP was published, which unexpectedly rose to the values of December last year, increasing the demand for the Canadian dollar against the US dollar.
Fig. 2. Canadian GDP (m m) chart
On the published statistics, the USD/CAD pair accelerated the decline, returning to the lower border of the side channel, pointing to the possibility of expanding the trading range, while maintaining the existing side trend. Significant support levels: 1.3350 and 1.3330, resistance: 1.3380 and 1.3400.
Fig. 3. USD/CAD chart. The current price is 1.3360.
Read also: “Money Management on FOREX – URGENT / IMPORTANT”
Hanzenko Anton
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