FxWirePro: USD/CAD rises as U.S. GDP beats estimates, BoC holds rates steady

• USD/CAD moved higher Wednesday  as investors digested US GDP data and Bank of Canada rate decision .

• The Bank of Canada held its key policy rate steady at 2.75% for the third consecutive meeting on Wednesday, as expected, citing a reduced risk of a severe and escalating global trade war.

• The Bank of Canada aggressively cut rates by 225 basis points beginning in June last year, but has paused since March to assess the impact of tariffs on the economy and inflation.

• U.S. economic growth rebounded more than expected in the second quarter, with gross domestic product rising at a 3.0% annualized rate, according to the Commerce Department’s Bureau of Economic Analysis.

•Economists polled   had forecast GDP to rebound at a 2.4% annualized rate. In nominal terms, the size of the U.S. economy surpassed $30 trillion for the first time ever last quarter

• At GMT 14:49 ,the greenback  was up 0.29% at 1.3808 against Canadian dollar.

• Immediate resistance is located at 1.3840(Higher BB), any close above will push the pair towards 1.3869(50%fib).

• Support is seen at 1.3742(38.2%fib) and break below could take the pair towards 1.3680(SMA 20).

Recommendation: Good to buy around 1.3800, with stop loss of 1.3720 and target price of 1.3880