USD/CAD ends week slightly higher after Friday’s rally

Matías Salord FXStreet

The Loonie dropped across the board on Friday and erased weekly gains versus the US dollar. Lower-than-expected inflation data from Canada triggered a decline of currency.

The CPI rose 0.1% in May, below the 0.2% expected. The annual rate stood at 1.3%. Weak inflation numbers offset the latest comments from Bank of Canada officials, that pointed toward a possible hike before year end.

USD/CAD jumped to 1.3308 after the data but failed to hold on top and pulled back. During the last hours, it has been hovering around 1.3260, consolidating a weekly gain of less than 30 pips.

The pair continues to consolidate near multi-month lows, despite the 3% slide in crude oil prices. If the next week, oil recovers ground, the downside momentum could rise sharply.

Levels to watch

Despite the weekly gain, the bearish tone still prevails with price consolidating under the 20-week moving average.

To the downside, the immediate key support is support seen around 1.3200 and then, attention would turn to 1.3160, the June low; under that area, the next medium-term support could be seen around the 1.30 handle.

Any recovery below 1.3420 could be seen as corrective. If the greenback breaks above 1.3420, the bearish tone would be seriously damaged.

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD trims gains, back below 1.1800

EUR/USD now loses some upside momentum, returning to the area below the 1.1800 support as the Greenback manages to regain some composure following the SCOTUS-led pullback earlier in the session.

GBP/USD off highs, recedes to the sub-1.3500 area

Following earlier highs north of 1.3500 the figure, GBP/USD now faces some renewed downside pressure, revisiting the 1.3490 zone as the US Dollar manages to regain some upside impulse in the latter part of the NA session on Friday.

Gold climbs to weekly tops, approaches $5,100/oz

Gold keeps the bid tone well in place at the end of the week, now hitting fresh weekly highs and retargeting the key $5,100 mark per troy ounce. The move higher in the yellow metal comes in response to ongoing geopolitical tensions in the Middle East and modest losses in the US Dollar.