USD/CAD attempts recovery from below 1.3600 ahead of Canadian GDP and US PCE Price Index

• USD/CAD has shown some recovery after building a base below 1.3600.
• S&P500 ended Thursday with immense gains amid upbeat quarterly earnings from US tech stocks, portraying a risk-on mood.
• Monthly Canadian GDP (Feb) might show a growth rate of 0.2% vs. 0.5% released earlier.

The USD/CAD pair has made efforts for a rebound after building a base around 1.3590 in the Asian session. The Loonie asset has shown a recovery move, however, the US Dollar Index (DXY) is still in corrective action and has not shown any sign of recovery yet.

The USD Index is gradually correcting after a strong upside move on Thursday to near 101.80. A significant decline in United States Gross Domestic Product (GDP) data has propelled fears of economic slowdown. The US GDP (Q1) data landed at 1.1% while the street was anticipating a decline in the pace of growth rate to 2.0% from the former expansion of 2.6%.

According to the US GDP report, utilization of entire inventory by businesses amid fears of economic slowdown indicates that firms are losing confidence in the US economy due to higher interest rates from the Federal Reserve (Fed).

S&P500 ended Thursday’s session with significant gains as investors focused on upbeat quarterly performance from US tech-savvy stocks and ignored recession fears, portraying a solid risk appetite of the market participants. Tech stocks beat earnings estimates and revenue guidance, indicating that consumer spending is extremely solid.

Going forward, the US Dollar will dance to the tunes of core Personal Consumption Expenditure (PCE) Price Index data (March). As per the consensus, monthly data is expected to sustain at a pace of 0.3% while annual data would soften to 4.5% from the former release of 4.6%.

The Canadian Dollar is expected to show sheer volatility amid the release of the GDP data. Monthly GDP data (Feb) might show a growth rate of 0.2% vs. 0.5% released earlier.