USD/CAD edges lower toward 1.2300 ahead of US inflation data

USD/CAD struggles to gather bullish momentum following Thursday's modest rebound.
US Dollar Index continues to fluctuate below 92.00 on Friday.
Investors await May PCE inflation data from the US.

Eren Sengezer FXStreet

The USD/CAD pair managed to post modest recovery gains on Thursday and stayed relatively quiet during the Asian trading hours on Friday. Nevertheless, the pair started to edge lower ahead of the American session and was last seen losing 0.07% on a daily basis at 91.75.

Eyes on US inflation data

Following the mixed macroeconomic data releases from the US, FOMC policymakers' remarks on the policy outlook helped the USD stay resilient against its rivals on Thursday. Dallas Fed President Robert Kaplan noted that there is an upside risk to his forecast for 3.4% inflation this year and St. Louis Fed President James Bullard argued that policymakers need to account for new inflation risks in coming months.

The US Dollar Index, which closed the previous day ittle changed at 91.81, is currently posting small losses at 91.75, allowing USD/CAD to stay in the negative territory.

Later in the session, the US Bureau of Economic Analysis will release the Core Personal Consumption Expenditures (PCE) Price Index, the Fed's preferred gauge of inflation, for May.

US May PCE inflation preview: Data likely to reaffirm FOMC's hawkish tilt.

There won't be any high-tier data releases featured in the Canadian economic docket. Meanwhile, the barrel of West Texas Intermediate (WTI) is trading with small daily losses around $73, limiting the commodity-related loonie's gains for the time being.

Technical levels to watch for

USD/CAD

Overview
Today last price	1.2309
Today Daily Change	-0.0014
Today Daily Change %	-0.11
Today daily open	1.2323

Trends
Daily SMA20	1.2186
Daily SMA50	1.2219
Daily SMA100	1.2409
Daily SMA200	1.2695

Levels
Previous Daily High	1.2341
Previous Daily Low	1.2283
Previous Weekly High	1.2481
Previous Weekly Low	1.2128
Previous Monthly High	1.2352
Previous Monthly Low	1.2013
Daily Fibonacci 38.2%	1.2319
Daily Fibonacci 61.8%	1.2305
Daily Pivot Point S1	1.229
Daily Pivot Point S2	1.2257
Daily Pivot Point S3	1.2232
Daily Pivot Point R1	1.2348
Daily Pivot Point R2	1.2373
Daily Pivot Point R3	1.2406

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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