Loonie erases Thursday’s gains after weaker than expected Canada inflation data
Canadian dollar fell back to 1.3300 against the greenback, retracing the largest part of Thursday's rise, inspired by better than expected Canada retail sales. Loonie came under pressure on disappointing CPI data, as Canadian inflation rose less than expected in May. Consumer price index increased in May by 0.1% from the previous month, falling below forecast for a 0.2% increase and 0.4% rise in April. Annualized inflation rose by 1.3% in May, undershooting 1.5% forecast and 1.6% increase in April. Fresh rally improved near-term technicals and left another base at 1.3200 zone which acts as very strong support. Lift above initial barriers at 1.3255 (falling Tenkan-sen / 10SMA), eased downside pressure, turning near-term focus higher and seeing scope for renewed attempt at 1.3340 (200SMA) which repeatedly capped correction from 1.3164 (14 June low).
Res: 1.3306; 1.3340; 1.3351; 1.3387
Sup: 1.3255; 1.3200; 1.3190; 1.3164
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Author
Slobodan Drvenica
Windsor Brokers
Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.
