USD/CAD approaches 1.3400 on downbeat data

Pablo Piovano FXStreet

The Canadian Dollar has depreciated further vs. its American neighbour on Friday, lifting USD/CAD to fresh daily peaks in the 1.3380 area.

USD/CAD bid ahead of Trump

Spot met extra upside pressure after Canadian inflation figures tracked by the CPI rose at an annualized 1.5% and contracted 0.2% on a monthly basis, both readings missing expectations.

Further data saw Core prices measured by the BoC following suit, up 1.6% over the last twelve months and dropping 0.3% inter-month.

Canadian Retail Sales have also disappointed markets during November, expanding 0.2% MoM vs. forecasts for a 0.5% gain.

The pair sticks to the bullish fashion today amidst a solid recovery of the greenback ahead of Trump’s presidential inauguration and Fedspeak. On the CAD side, the currency seems to ignore the better tone in crude oil prices, with the barrel of West Texas Intermediate up more than 1% to levels below the $53.00 mark.

USD/CAD significant levels

As of writing the pair is gaining 0.41% at 1.3373 facing the next resistance at 1.3463 (high Jan.3) ahead of 1.3575 (50% Fibo of the 2016 drop) and then 1.3601 (high Dec.28). On the flip side, a breach of 1.3250 (low Jan.19) would aim for 1.3016 (low Jan.17) and then 1.3002 (low Oct.19).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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