USD/CAD jumps above 1.3100 on poor data
The Canadian dollar has quickly surrendered initial gains vs. its neighbour today, sending USD/CAD to fresh highs above the 1.3100 handle.
USD/CAD higher on poor data
Spot met extra buying pressure after Canadian inflation figures tracked by the CPI have come in short of expectations, rising 1.1% on a year to August and contracting 0.2% on a monthly basis.
Further data saw core prices gauged by the Bank of Canada coming in flat inter-month and rising 1.8% over the last twelve months.
Canadian Retail Sales have contracted at a monthly 0.1% MoM in July and 0.1% stripping the Autos sector, all readings coming in below initial estimates.
Adding to CAD-weakness, the barrel of the West Texas Intermediate remains in the negative territory, shedding 0.40% near the $46.00 mark.
Later in the day, USD will take centre stage as FOMC’s Harker, Lockhart and Mester are due to speak.
USD/CAD significant levels
As of writing the pair is up 0.62% at 1.3123 and a breakout of 1.3249 (high Sep.16) would open the door to 1.3253 (high Jul.27) and finally 1.3311 (38.2% Fibo of the 2016 drop). On the other hand, the next support aligns at 1.2996 (low Sep.22) ahead of 1.2818 (low Sep.7) and then 1.2759 (low Aug.18).
Author
Pablo Piovano
FXStreet
Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.
