FxWirePro: USD/CAD advances as weak Canadian GDP data weighed on Loonie

• USD/CAD strengthened  on Friday as stronger greenback and downbeat Canadain GDP data weighed on Canadian dollar. 

•Dollar strengthened after comments from some Fed officials that further dampened expectations the central bank will cut interest rates at its December meeting.

•Kansas City Fed President Jeffrey Schmid opposed this week’s rate cut, citing persistent inflation and broader price pressures.

•In addition, Dallas Federal Reserve President Lorie Logan said the Fed should not have lowered interest rates this week and cautioned against another cut in December.

• Canada's GDP contracted in August against a consensus estimate of flat growth, data showed on Friday, and an advance estimate suggested the economy might escape a recession in the third quarter.

• The economy shrank by 0.3% in August following upwardly revised growth of 0.3% in the prior month, Statistics Canada said, effectively nullifying any growth so far in the current quarter.

•  Immediate resistance is located at 1.4071(23.6%fib), any close above will push the pair towards 1.4088(Higher BB).

• Support is seen at 1.3966 (38.2%fib) and break below could take the pair towards 1.3910(Lower BB).

Recommendation: Good to buy around 1.3960, with stop loss of 1.3900 and target price of 1.4100