USD/CAD looks set to refresh monthly low to near 1.3550 ahead of US/Canada GDP

• USD/CAD is likely to refresh its monthly low below 1.3555 amid the risk-on mood.
• S&P500 futures were heavily bought as fading US banking fears infused confidence among investors.
• Oil price has extended its correction below $73.00 despite the US EIA reporting a huge drawdown in oil stockpiles by 7.489 million barrels.

The USD/CAD pair is hovering near a monthly low around 1.3555 in the early Asian session. The Loonie asset is expected to refresh the same despite some sort of recovery from the US Dollar Index (DXY). The major has shown a three-day losing spell and is expected to continue the same if it surrendered the 1.3555 support. The USD Index is juggling in a narrow range after a mild correction as the upside looks capped around 102.80.

S&P500 futures were heavily bought by the market participants on Wednesday as fading United States banking fears infused confidence among investors. Also, US authorities are making efforts in assuring households of continuing deposits to mid-size banks after the collapse of a couple of banks.

The risk appetite theme underpinned by the market participants has improved the appeal of the Canadian Dollar. Going forward, investors will keep focusing on the Canadian Gross Domestic Product (GDP) data, which will release on Friday. As per the consensus, the Canadian economy has grown by 0.3% in January on a monthly basis against a contraction of 0.1% reported earlier.

But before that, US GDP data will release on Thursday. The economic data is expected to remain steady at 2.7%. The Federal Reserve (Fed) will keep its focus on the GDP data as any contraction in growth rate could propel keeping rates steady ahead. As per the CME Fedwatch tool, more than 60% of investors are favoring an unchanged monetary policy by the Fed.

On the oil front, the oil price has extended its correction below $73.00 despite the US Energy Information Administration (EIA) reporting a huge drawdown in oil stockpiles by 7.489 million barrels for the week ending March 24.