USD/CAD depreciates to near 1.3650 ahead of Canada’s CPI

USD/CAD extends its losing streak ahead of Canada’s inflation data release on Tuesday.
Lower WTI price may limit the upside of the commodity-linked Canadian Dollar.
Fed’s Austan Goolsbee said that the Fed might need to consider the impact of restrictive policy on the US economy.

Akhtar Faruqui FXStreet

USD/CAD continues its losing streak that began on June 14, trading around 1.3650 during the European session on Tuesday. Statistics Canada is set to release the top-tier Consumer Price Index (CPI) data for May later in the North American session.

Also read: Canada CPI Preview: Inflation expected to tick down in May

The downward correction in the crude Oil prices put pressure on the commodity-linked Canadian Dollar (CAD) as Canada is the largest crude Oil exporter to the United States (US). West Texas Intermediate (WTI), the US crude Oil benchmark, trades around $81.40, at the time of writing. However, Crude prices may limit its downside on the hope for a strong summer driving demand and Oil supply concerns amid the ongoing geopolitical tensions in the Middle East.

The US Dollar (USD) received downward pressure from dovish comments from Chicago Fed President Austan Goolsbee, which in turn undermines the USD/CAD pair. On Monday, Goolsbee said in a chat show on CNBC’s Squawk Box that the Federal Reserve might need to consider whether the restrictive policy is putting too much pressure on the economy.

US Dollar Index (DXY), which measures the value of the US Dollar against six other major currencies, remains softer ahead of the revised US Gross Domestic Product (GDP) for the first quarter (Q1) is set to be released on Thursday, followed by the Personal Consumption Expenditure (PCE) Price Index on Friday.

USD/CAD

Overview
Today last price	1.3647
Today Daily Change	-0.0008
Today Daily Change %	-0.06
Today daily open	1.3655

Trends
Daily SMA20	1.37
Daily SMA50	1.3694
Daily SMA100	1.3619
Daily SMA200	1.3586

Levels
Previous Daily High	1.3708
Previous Daily Low	1.365
Previous Weekly High	1.3764
Previous Weekly Low	1.3675
Previous Monthly High	1.3783
Previous Monthly Low	1.359
Daily Fibonacci 38.2%	1.3672
Daily Fibonacci 61.8%	1.3686
Daily Pivot Point S1	1.3634
Daily Pivot Point S2	1.3613
Daily Pivot Point S3	1.3575
Daily Pivot Point R1	1.3692
Daily Pivot Point R2	1.373
Daily Pivot Point R3	1.3751

Author

Akhtar Faruqui

FXStreet

Akhtar Faruqui is a Forex Analyst based in New Delhi, India. With a keen eye for market trends and a passion for dissecting complex financial dynamics, he is dedicated to delivering accurate and insightful Forex news and analysis.

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