- Core-CPI rises 0.3% on a monthly basis in December.
- Retail sales data come in line with expectations.
- WTI consolidates gains below $64.
The USD/CAD pair gained traction and added nearly 50 pips in a matter of minutes with the initial reaction to the macroeconomic data releases from the United States. After rising 1.2555, however, the pair lost its momentum and was last seen trading at 1.2530, where it was up 0.08% on the day.
According to the data released by the U.S. Bureau of Labor Statistics, inflation, measured by the core Consumer Price Index, rose 0.3% on a monthly basis in December, beating the market expectation of 0.2% and lifting the annual rate up to 1.8% from 1.7%. A separate report on Friday showed that following November's 0.9% increase, retails sales grew by 0.4% in December, coming in line with the experts' estimate.
Meanwhile, following the impressive rally to a fresh three-high on Thursday, crude oil prices went into a consolidation phase on the last day of the week, not allowing the commodity-sensitive loonie to gather enough strength to pull the pair down into the negative territory. At the moment, the barrel of West Texas Intermediate is trading at $63.40, losing 0.6% on the day.
Later in the session, Business Inventories and IBD/TIPP Economic Optimism Index from the U.S. will be looked upon for fresh impetus. Before markets wrap up the week, Boston Fed President Rosengren is going to deliver a speech as well.
Technical levels to consider
The pair could encounter the first technical resistance at 1.2635 (100-DMA) ahead of 1.2710 (50-DMA) and 1.2800 (psychological level/Dec. 22 high). On the downside, supports align at 1.2500 (psychological level), 1.2430 (Jan. 10 low) and 1.2355 (Jan. 5 low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends losses on dovish remarks from ECB members, trades near 1.0780
EUR/USD continues its downward trend for the fourth consecutive day, driven by a stronger US Dollar influenced by the hawkish market sentiment surrounding the Federal Reserve and expectations of prolonged higher interest rates.
GBP/USD trades sideways above 1.2600 amid quiet session
The GBP/USD pair trades sideways around 1.2622 during the early Friday. The market is likely to be mute in light trading on Good Friday. Later in the day, the US Core Personal Consumption Expenditures Price Index will be released.
Gold ends Q1 2024 at record highs, what’s next?
Gold is sitting at an all-time high of $2,236, lacking a trading impetus amid holiday-thinned conditions on Good Friday. Most major world markets, including the United States are closed in observance of Holy Friday, leaving volatility around Gold price highly subdued.
Ripple's move above this key level could trigger nearly 50% rally for XRP
Ripple price has overcome a critical resistance level and flipped into a support floor on the weekly time frame. This development happened while XRP tightly consolidated for roughly 250 days. As this coiling up comes undone, investors can expect XRP to kickstart a massive rally.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.