USD/CAD defends 1.2450 ahead of US Inflation, FOMC minutes

USD/CAD trades in a rangebound manner on Wednesday in the Asian session.
Crude oil retreats from seven-year highs, but still, remains firm near 80.50.
Lower US Treasury yields undermine the demand for the US dollar.

Rekha Chauhan Independent Analyst

The USD/CAD pair edges higher in the middle of the week. The pair has remained stuck in a narrow trade band of 1.2440 and 1.2500 for the past three-session. At the time of writing, USD/CAD is trading at 1.2470, up 0.04% for the day.

The US dollar retreats from the higher levels ahead of the US Core Inflation Index (CPI) readings. A day earlier, consensus forecasts pointed to a 5.3% in the CPI for September on yearly basis. The Federal Reserve will keep a close watch on inflation readings to go ahead with its tapering decision.

The Federal Reserve Bank of Richmond President Thomas Barkin commented pricing pressure is due to supply-chain bottlenecks that weigh on the greenback. In addition to that, Atlanta Fed President Raphael Bastic said the current inflation is not doing much to harm the economy to call Fed’s policy stance into question.

In the meantime, the US debt limit has passed in the House and will be presented to US President Joe Biden for signing.

The loonie manages to gain traction on robust WTI prices, a major Canadian export. As for now, traders are waiting for the US Core Inflation Index, and FOMC Minutes to take fresh trading impetus.

USD/CAD additional levels

Overview
Today last price	1.2465
Today Daily Change	-0.0004
Today Daily Change %	-0.03
Today daily open	1.2469

Trends
Daily SMA20	1.2647
Daily SMA50	1.2627
Daily SMA100	1.2491
Daily SMA200	1.2512

Levels
Previous Daily High	1.2498
Previous Daily Low	1.2434
Previous Weekly High	1.2655
Previous Weekly Low	1.2452
Previous Monthly High	1.2896
Previous Monthly Low	1.2494
Daily Fibonacci 38.2%	1.2459
Daily Fibonacci 61.8%	1.2474
Daily Pivot Point S1	1.2436
Daily Pivot Point S2	1.2403
Daily Pivot Point S3	1.2372
Daily Pivot Point R1	1.25
Daily Pivot Point R2	1.2531
Daily Pivot Point R3	1.2564

Author

Rekha Chauhan

Independent Analyst

Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.

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