• USD/CAD dipped on Thursday as greenback weakened on ongoing concerns over Fed independence.
• The U.S. dollar came under renewed pressure as President Donald Trump intensified efforts to influence monetary policy, including his attempt to dismiss Fed Governor Lisa Cook.
• Investors will focus on Friday’s Personal Consumption Expenditures data, with any signs of rising inflation potentially dampening expectations for a Fed rate cut in September.
• Traders are pricing in more than an 80% chance of an interest rate cut next month, according to CME Group's FedWatch.
•Statistics Canada will release Q2 GDP data on Friday, along with an advance estimate for July, which investors will closely watch to assess the economy’s health and the likelihood of a rate cut next month.
• Immediate resistance is located at 1.3801(SMA 20), any close above will push the pair towards 1.3803(50%fib).
• Support is seen at 1.3708 (38.2%fib) and break below could take the pair towards 1.3679(Lower BB).
Recommendation: Good to buy around 1.3780, with stop loss of 1.3700 and target price of 1.3900
