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.

Eren Sengezer FXStreet

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

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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