Fundamental analysis
27 May, 2022
During most of European trade, the Canadian dollar strengthened further against the US dollar. The first reading of the US GDP for the first quarter, showed a gloomier picture of the state of the US economy. In addition, the day before yesterday's notes from the last meeting of the Fed showed a slightly milder hawkish tone, which was reflected in a milder withdrawal of the US currency. Currency traders have previously exerted (selling) pressure on the US currency, lowering expectations of a strengthening US dollar due to rising US interest rates. The growth of crude oil prices has accelerated, which is also in favor of Loonie. At around 13:45, the US dollar was exchanged for 1.2743 Canadian dollars, which represents a strengthening of the Canadian dollar by 0.22% since the beginning of trading last night. At 14:30, the personal consumption (inflation) index (PCE) will be published in the USA in April, which follows the Fed in conducting its monetary policy.
