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US Core PCE came as expected, while Canadian GDP lags again – Market reactions

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US Core PCE came as expected, while Canadian GDP lags again – Market reactions - ExpertFX School

Markets just received the report for the much-anticipated Core PCE, which came exactly as expected – The month-over-month Core release came at 0.3 % vs 0.3% expectations.

All data components are once again exactly as expected, Core PCE is calculated from already released data, so not surprising to get accurate expectations.

This brings the y/y total to 2.6% for the headline and 2.9% for the Core.

Canada released their own GDP data which came at -0.1%, a miss on the already weak 0.1% m/m expectations.

Annualized, the Canadian GDP is at -1.6%!

Canada is still awaiting for a proper relaunch of their slowing economy, and the Loonie that was strenghtening these past few days is giving up some of this strength. Canadian PM Carney and US President Trump are however getting back to better ground.

Let's see how it plays out for the two North-American neighbors.

Spot live reactions to the Dollar Index and USDCAD just below

Dollar Index 30m Chart – Rising but the report didn't change much

US Core PCE came as expected, while Canadian GDP lags again – Market reactions - ExpertFX School
Dollar Index 30m Chart, August 29, 2025 – Source: TradingView

The Dollar is rising slowly but will be stepping against the 30m 200-MA around 98.17, still evolving in a range within the 98.00 handle.

USDCAD 30m Chart

US Core PCE came as expected, while Canadian GDP lags again – Market reactions - ExpertFX School
USDCAD 30m Chart, August 29, 2025 – Source: TradingView

The Loonie is losing some steam after the data. The pair is still evolving in a downward channel.

You can access our latest analysis of the pair right here.

Safe trades!

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