USD/CAD advances to daily highs above 1.2500 after US inflation report


  • USD/CAD is rising sharply in early American session.
  • Annual CPI inflation in US rose to 5.4% in June.
  • US Dollar Index advances above 92.50 after CPI data.

The USD/CAD pair gained traction in the early American session and reached a daily high of 1.2522. As of writing, the pair was up 0.5% on the day at 1.2513.

DXY shoots higher on stronger-than-expected CPI

The renewed USD strength seems to be fueling USD/CAD's upside on Tuesday. The monthly data published by the US Bureau of Labor Statistics revealed that inflation in the US, as measured by the Consumer Price Index (CPI), jumped to 5.4% in June. This reading surpassed the market expectation of 4.9% by a wide margin and provided a boost to the greenback. Additionally, the Core CPI, which strips volatile energy and food prices, increased to 4.5%, compared to analysts' estimate of 4%.

Reflecting the positive impact of these figures on the USD, the US Dollar Index (DXY) spiked to a daily high of 92.63 before retreating modestly. At the moment, the DXY is up 0.3% on a daily basis at 92.52.

In the meantime, US stocks futures turned negative on the day after the CPI report, suggesting that risk-off flows could allow the USD to continue to outperform its rivals after the opening bell.

Technical levels to watch for

USD/CAD

Overview
Today last price 1.247
Today Daily Change 0.0017
Today Daily Change % 0.14
Today daily open 1.2453
 
Trends
Daily SMA20 1.2374
Daily SMA50 1.2216
Daily SMA100 1.2375
Daily SMA200 1.264
 
Levels
Previous Daily High 1.2514
Previous Daily Low 1.2444
Previous Weekly High 1.259
Previous Weekly Low 1.2303
Previous Monthly High 1.2487
Previous Monthly Low 1.2007
Daily Fibonacci 38.2% 1.2487
Daily Fibonacci 61.8% 1.2471
Daily Pivot Point S1 1.2427
Daily Pivot Point S2 1.24
Daily Pivot Point S3 1.2356
Daily Pivot Point R1 1.2497
Daily Pivot Point R2 1.2541
Daily Pivot Point R3 1.2568

 

 

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. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD struggles around 1.17 on yield-fueled dollar strength

EUR/USD is pressured under 1.17 as the dollar benefits from higher US Treasury yields. US Durable Goods Orders beat estimates with 1.8%. The center-left SPD came on top in the German elections.

EUR/USD News

GBP/USD hovers around 1.37. dismissing UK petrol crisis

GBP/USD is trading at around 1.37, as sterling shrugs off the drying up of some petrol stations due to Brexit-related lorry driver shortages.

GBP/USD News

XAU/USD eyes $1767 critical supply zone

Gold is easing off the higher levels, as the risk-on market environment amid ebbing China Evergrande fears and US stimulus optimism dulls the safe-haven appeal of the bright metal.

Gold News

Huobi to stop servicing Chinese users as China vows strict crackdown on crypto

A few months after the cryptocurrency mining ban in China, the country issued another update last week, reiterating that digital assets are banned and crypto exchanges are prohibited.

Read more

Apple: Is the new iPhone 13 a reason to buy?

Apple stock barely registers any change on Friday. AAPL closes at $146.92 for a tiny gain. Stocks are struggling for upside momentum from the latest dip.

Read more

Forex MAJORS

Cryptocurrencies

Signatures