FxWirePro : USD/CAD dips as market digest U.S. CPI, Canadian GDP

• USD/CAD dipped on Friday as markets absorbed   key economic data from both sides of the border.

• U.S. consumer spending increased solidly in July while underlying inflation picked up as tariffs on imports raised prices of some goods.

•  The U.S. Personal Consumption Expenditures Price index rose 0.2% month-on-month, and was up 2.6% on a year-on-year basis - both in line with expectations.

Traders now see an 89% chance of a 25-basis-point Fed rate cut in September, up from 85% before the latest data (FedWatch).

• Meanewhile,Canada's economy contracted more than expected, falling 1.6% on an annualized basis in the second quarter, as exports significantly declined.

• The chances of a rate cut in Canada next month are now nearly a coin flip, with odds rising to 48.5% from 38% earlier in the day.

• Immediate resistance is located at 1.3801(SMA 20), any close above will push the pair towards 1.3877(50%fib).

• Support is seen at 1.3735 (38.2%fib) and break below could take the pair towards 1.3659(Lower BB).

Recommendation: Good to sell around 1.3750, with stop loss of 1.3850 and target price of 1.3690