USD/CAD holds steady near mid-1.3200s post-Canadian CPI, focus remains on FOMC
|- A follow-through pullback in Oil prices continued to undermine Loonie.
- Softer Canadian inflation figures for August extended additional support.
- The key focus remains firmly on the highly anticipated FOMC policy decision.
The USD/CAD pair surrendered early modest gains to an intraday high level of 1.3272 and refreshed session lows in the last hour, albeit quickly recovered few pips post-Canadian CPI.
The pair continued with its struggle to build on the intraday attempted bullish moves and once again met with some fresh supply at higher levels, despite a modest pickup in the US Dollar demand. Even a weaker tone surrounding Crude Oil prices, which tend to undermine demand for the commodity-linked currency - Loonie, also did little to provide any meaningful impetus.
Softer Canadian CPI extended some support
The pair touched daily lows during the early Nort-American session but managed to find some support following the release of softer Canadian consumer inflation figures. In fact, the headline CPI and the BoC's core CPI fell by 0.1% during the reported month and unexpectedly eased to 1.9%, which eventually exerted some pressure on the Canadian Dollar and helped limit the intraday downtick.
It will now be interesting to see if the pair is able to regain some positive traction or continues with its intraday pullback as investors start repositioning for Wednesday's key event risk - the highly anticipated FOMC monetary policy decision - scheduled to be announced later during the US trading session.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.