USD/CAD trades higher near 1.3530 on robust US data, eyes on US Initial Jobless Claims
- USD/CAD continues to gain due to robust US economic indicators.
- Elevated Treasury yields supported the strength of the Greenback.
- FOMC’s minutes revealed a divergence among Fed officials concerning interest rate hikes.
The US docket has the US Housing Starts (MoM) figure in July, which improved to 1.452M from the previous month’s 1.398M, compared to the expected 1.448M. The Monthly Industrial Production posted a reading of 1% against the anticipated 0.3%, which increased from the previous reading of -0.8%. However, US Building Permits increased to 1.442M from the 1.441M prior, compared to the anticipated 1.463M in July.
The USD/CAD pair is also benefiting from the rise in US Treasury yields, driven by elevated optimism and an increase in risk appetite. This shift in investor behavior is contributing to the positive performance of the Greenback against the six major currencies. US Dollar Index (DXY) trades around 103.50 during the trading hours in the Asian session on Thursday.
Additionally, the Federal Open Market Committee’s (FOMC) minutes of the July meeting revealed a divergence of opinions among Fed officials concerning interest rate hikes. While certain members anticipated a potential economic contraction resulting from higher interest rates, the majority of policymakers remained committed to reducing inflation and reaching the 2% target.
Investors will likely monitor the forthcoming announcements of the US Initial Jobless Claims and the Philadelphia Fed Manufacturing Survey, both scheduled for release during the North American session. These datasets have the potential to offer new insights into the broader economic prospects, aiding traders in gaining a clearer perspective on the USD/CAD pair.