- 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
|Today last price||1.247|
|Today Daily Change||0.0017|
|Today Daily Change %||0.14|
|Today daily open||1.2453|
|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.