• USD/CAD held steady on Friday as markets absorbed both U.S. PCE inflation figures and Canadian GDP data.
• U.S. consumer spending, responsible for over two-thirds of economic output, climbed 0.6% in August, edging past the 0.5% increase projected by economists surveyed.
• The Personal Consumption Expenditures Price Index, the Federal Reserve’s preferred inflation gauge, increased 0.3% in August, matching forecasts, according to data from the U.S. Commerce Department.
• Canada’s monthly gross domestic product rose 0.2% in July, rebounding after three straight months of contraction, driven by gains in mining, manufacturing, and wholesale trade, data showed Friday.
• Investors are pricing in an 88% probability of a rate cut in October and a 65% chance of another in December, according to the CME FedWatch Tool.
•On the trade front, President Donald Trump unveiled a new round of tariffs on imported drugs, trucks, and furniture, set to take effect on October 1.
• Immediate resistance is located at 1.3966(50%fib), any close above will push the pair towards 1.3992(Higher BB).
• Support is seen at 1.3886(Sep 25th low) and break below could take the pair towards 1.3828(SMA20).
Recommendation: Good to buy around 1.3930, with stop loss of 1.3860 and target price of 1.4000
