Ella 
During early Asian trading on Friday, USD/CAD extended its losses to around 1.3655. The US dollar (USD) fell to two-week lows near 105.00, bringing some selling pressure to the pair. Investors will now turn their attention to U.S. personal consumption expenditures (PCE) price index data due later on Friday.
Data released by the U.S. Department of Commerce on Thursday showed that due to accelerating price increases, the U.S. economic growth in the first quarter of 2024 was the slowest in the past two years. The preliminary GDP growth in the first quarter was 1.6% year-on-year, while the fourth quarter of 2023 was An increase of 3.4%. This figure was below the consensus estimate of 2.5%. Additionally, U.S. personal consumption expenditures prices increased at an annualized rate of 3.4% in the first quarter, nearly double the 1.8% rate in the fourth quarter of 2023.
Markets are expecting the Fed to start cutting interest rates for the first time in September, with traders currently pointing to just one rate cut in 2024 after the GDP data is released, according to the CME FedWatch tool.
In the Canadian dollar, weak Canadian retail sales data on Wednesday fueled speculation that the Bank of Canada (BOC) may begin cutting interest rates at its next meeting in June, which could drag the Canadian dollar (CAD) lower. However, a rebound in crude oil prices has provided some support for the Canadian dollar as Canada is the largest exporter of crude oil to the United States.
