USD/CAD recovers soft US Inflation-induced losses from 1.3600


  • USD/CAD bounces back from 1.3600 on weak Canadian Manufacturing Sales data.
  • The US Dollar faces a sell-off due to an expected decline in the US inflation data.
  • Weak US Retail Sales also weighed on the US Dollar.

The USD/CAD pair rebounds sharply after falling to near the round-level support of 1.3600 in Wednesday’s New York session. The Loonie asset recovers as poor Canadian Manufacturing Sales data weakens the Canadian Dollar.

Earlier, the major faced selling pressure as the US Dollar tumbled after the United States (US) Bureau of Labor Statistics (BLS) has reported that the Consumer Price Index (CPI) data for April declines in consistent with estimates. However, the US Dollar has rebounded but is expected to remain on the edge.

The expected decline in the US inflation data has boosted expectations about the Federal Reserve (Fed) to begin reducing interest rates from the September meeting. This has also improved investors risk-appetite. The S&P 500 has posted significant gains at open. 10-year US Treasury yields have plummeted to 4.38%. The US Dollar Index (DXY) reverses to 104.80 after printing a fresh monthly low near 104.50 but is still down.

The US agency reported that annual headline, and core CPI (which strips off volatile food and energy prices) grew in line with estimates of 3.4% and 3.6% respectively. The decline in the inflation data came from lower prices of utility gas services and used cars and trucks. Rentals, transportation and medical services price index continue to gain higher.

Apart from soft US inflation figures, weak monthly Retail Sales data also built pressure on the US Dollar. Monthly Retail Sales were unchanged while investors anticipated an increase by 0.4%.

On the Loonie front, weak monthly Manufacturing Sales data for March has also built pressure on the Canadian Dollar. Statistics Canada reported that Manufacturing Sales contracted at a faster pace of 2.1% while investors forecasted a decline by 1.4%. In February, the economic data rose by 0.9%, upwardly revised from 0.7%.

USD/CAD

Overview
Today last price 1.3656
Today Daily Change 0.0005
Today Daily Change % 0.04
Today daily open 1.3651
 
Trends
Daily SMA20 1.37
Daily SMA50 1.3625
Daily SMA100 1.3537
Daily SMA200 1.3566
 
Levels
Previous Daily High 1.3691
Previous Daily Low 1.3633
Previous Weekly High 1.3763
Previous Weekly Low 1.3618
Previous Monthly High 1.3846
Previous Monthly Low 1.3478
Daily Fibonacci 38.2% 1.3655
Daily Fibonacci 61.8% 1.3669
Daily Pivot Point S1 1.3625
Daily Pivot Point S2 1.36
Daily Pivot Point S3 1.3567
Daily Pivot Point R1 1.3684
Daily Pivot Point R2 1.3717
Daily Pivot Point R3 1.3742

 

 

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