USD/CAD hovers around three-month highs near 1.3950, awaits US PCE inflation, Canada GDP

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USD/CAD hovers around three-month highs near 1.3950, awaits US PCE inflation, Canada GDP
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USD/CAD appreciates to near its three-month high of 1.3940, recorded in the previous session, trading around 1.3920 during Thursday's European session.

USD/CAD maintains its position around a three-month high at 1.3940, marked on Wednesday. US GDP annualized expanded by 2.8% in Q3, below 3.0% in Q2 and forecasts of 3.0%. Traders will closely observe US PCE - Price Index and Canada ’s Gross Domestic Product data on Thursday. USD/CAD appreciates to near its three-month high of 1.3940, recorded in the previous session, trading around 1.3920 during Thursday's European session.

Other factors include market sentiment – whether investors are taking on more risky assets or seeking safe-havens – with risk-on being CAD-positive. As its largest trading partner, the health of the US economy is also a key factor influencing the Canadian Dollar. How do the decisions of the Bank of Canada impact the Canadian Dollar? The Bank of Canada has a significant influence on the Canadian Dollar by setting the level of interest rates that banks can lend to one another.

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