Canadian Dollar continues struggling after GDP data

• USD/CAD regains footing as anticipation for another Bank of Canada interest rate cut mounts due to flat economic growth in August.
• US PCE core inflation remains at 2.7% in October, slightly above market expectations.
• US Initial Jobless Claims fell to 216K in the week ending October 25, below the market's consensus.

The USD/CAD pair gained traction on Thursday, rising by 0.15% to 1.3920. This uptick came as markets digest the United States Personal Consumption Expenditures (PCE) Price Index from September and weekly US Jobless Claims unexpectedly fell.

The Canadian Dollar (CAD) remains under pressure following the Bank of Canada's (BoC) decision to aggressively cut interest rates by 50 basis points (bps) to 3.75%, a larger-than-expected move. The market anticipates further policy easing by the BoC at its next meeting in December, contributing to the CAD's weakness. The dovish bet also rose due to soft Canadian Gross Domestic Product (GDP) data released on Thursday.

Daily digest market movers: CAD weak due to soft GDP figures

• Flat economic performance in Canada, with GDP remaining stagnant in August and growing by a mere 0.1% in July, weighs on the Canadian Dollar .
• Subdued economic growth in Canada is expected to prompt the BoC to lower interest rates again in December.
• On the US front, the US PCE grew at a steady 2.1% yearly pace in October, down from September's 2.2%.
• Core inflation was maintained at 2.7%, above the market consensus expectation of 2.6%.
• US Jobless Claims unexpectedly fell to 216K in the week of October 25, indicating a robust labor market. 230K was expected.
• For Friday, economists estimate a modest 113K job creation figure in the October Nonfarm Payrolls number, lower than the previous month's 254K.
• The Unemployment Rate is projected to remain steady at 4.1%.

USD/CAD technical outlook: Pair trades sideways with bullish bias

The USD/CAD is trading sideways with a slightly bullish bias. The Relative Strength Index (RSI) is at 76, in the overbought area, suggesting that buying pressure is intense. The Moving Average Convergence Divergence (MACD) is flat, suggesting that buying pressure is taking a breather. This combination of signals indicates that the pair is poised to consolidate in the next several sessions.