FxWirePro: USD/CAD retreats after Canada posts stronger-than-expected GDP growth

• USD/CAD retreated   on Friday    as Investors assessed GDP ​data that showed the Canadian economy grew by a greater-than-expected   in May 

• Canada's economy expanded 0.3% in May, exceeding market expectations for a 0.2% increase. A preliminary estimate showed second-quarter annualized GDP growth could reach 3.4%, marking the strongest quarterly performance in more than three years.

• Investors expect the Bank of Canada to keep its benchmark interest rate unchanged in the coming months, while the probability of a rate hike by year-end has risen modestly to 68% from 60%, according to swap market pricing.

• U.S. crude futures rose 2.7% to $85.83 per barrel, adding to their monthly advance after reports that some vessels were forced to reverse course in the Strait of Hormuz prompted traders to reassess supply risks.

•  Immediate resistance is located at 1.4060(Daily high), any close above will push the pair towards 1.4109(38.2%fib).

• Support is seen at 1.4003(50%fib) and break below could take the pair towards 1.3957(SMA 20).

Recommendation: Good to sell around 1.4050  with stop loss of 1.4100 and target price of 1.3950