USD/CAD slumps to 4-week lows near 1.3280 as CAD gathers strength on inflation data
|- Annual CPI in Canada rises to 1.9% in March from 1.5% in February.
- The trade deficit in the U.S. drops to $49.4 billion.
- US Dollar Index stays near 97 after data.
The USD/CAD pair met heavy bearish pressure in the last hour after the loonie gathered strength on the back of the inflation data from Canada. As of writing, the pair, which slumped to its lowest level in four weeks at 1.3273, is trading at 1.3295, losing 0.4% on a daily basis.
Statistics Canada today announced that the Consumer Price Index (CPI) rose 1.9% on a yearly basis in March following February's 1.5% reading. "Energy prices decreased 1.2% in March, following a larger decline in February (-5.7%), as downward pressure from gasoline prices eased and prices for natural gas and fuel oil grew," the publication read. "Excluding energy, the CPI rose 2.2% year over year."
Other data from Canada revealed that the trade deficit decreased to $2.9 billion in February from $3.09 billion in January. Reflecting the broad loonie strength, the EUR/CAD also is down more than 50 pips on the day.
On the other hand, the U.S. Census Bureau reported that the trade deficit of the U.S. narrowed $49.4 billion to better the market expectation of $53.5 billion, helping the US Dollar Index staying close to the critical 97 handle.
Technical levels
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