The U.S. dollar erased losses against its Canadian counterpart on Wednesday, as data showing that the U.S. economy contracted less than initially expected in the last quarter lent support to the greenback.
The Commerce Department reported on Wednesday that gross domestic product contracted at a rate of 0.2% in the three months ending March 31, in line with expectations and compared to a previous estimate of a 0.7% contraction.
The upbeat data added to speculation that the Federal Reserve could raise interest rates as soon as in September.
Intra-day bias remains on the upside after a successful break of 1.2354 resistance. More rise is expected as 21 and 55 EMA are crossed upward with SSRC, MACD and RSI oscillators showing more signs of bullish momentum but i suggest a decisive break of 1.2421 minor resistance to see price push further up to 1.2561 major resistance.
Tomorrow investors would be taking a close look at U.S Unemployment claims.