The Canadian dollar is among the worst performers on Friday, weakened after CPI data from Canada and a sharp decline in crude oil prices. USD/CAD broke above 1.3500 and climbed to 1.3523, hitting a 1-month high. Currently, it is hovering around 1.3510/15, up 45 pips for the day so far.
The WTI barrel fell below $50.00 and is down more than 2%, weakening the demand for the Loonie. Earlier, the currency fell after the release of inflation data from Canada. The CPI rose 0.2% in March below the 0.4% expected. The annual rate fell to 1.6%.
A strong week
The recent rally added to weekly gains. The pair is having the best weekly performance since February and is headed to the highest close since December. A close above 1.3500 could be significant from a technical perspective, giving some support for an extension to the US dollar.
Since early March all weekly closes have been between 1.3300 and 1.3400 pointing to some consolidation on top of the 20-SMA, that stands at 1.3310. The next main challenged to the bullish perspective is the test of Q4 highs, located below 1.3600.
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