USD/CAD stays in the red below 1.2600 after Canada inflation data


  • USD/CAD continues to fluctuate in a tight range on Wednesday.
  • Annual inflation in Canada softened to 3.1% in June.
  • US Dollar Index holds above 92.60 as focus shifts to FOMC.

After dropping to 1.2560 area during the European trading hours, the USD/CAD pair staged a modest recovery in the early American session. As of writing, the pair was trading at 1.2386, still losing 0.12% on a daily basis.

Investors ignore Canada CPI data

Earlier in the session, the data published by Statistics Canada revealed that inflation, as measured by the Consumer Price Index (CPI), declined to 3.1% in June from 3.6% in May. Additionally, the Bank of Canada's (BoC) Core CPI inched lower to 2.7% on a yearly basis from 2.8%. 

Ahead of the FOMC's policy announcements, however, USD/CAD showed little to no reaction to the inflation data. Meanwhile, the US Dollar Index is posting modest daily gains at 92.64, not allowing the pair to turn south. The 1.7% increase seen in the benchmark 10-year US Treasury bond yield on Wednesday seems to be helping the greenback stay resilient against its rivals.

Previewing the FOMC's July policy meeting, "tapering is not a question of if, but when – and the timing of the Federal Reserve's announcement to create fewer dollars may have to wait longer," said FXStreet analyst Yohay Elam. "The world's most powerful central bank has been buying bonds at a rate of $120 billion/month for over a year, and economic improvement has implied it could withdraw some support. However, that could take more time, pushing the dollar down and allowing other currencies to rally alongside stock markets."

Technical levels to watch for

USD/CAD

Overview
Today last price 1.2581
Today Daily Change -0.0021
Today Daily Change % -0.17
Today daily open 1.2602
 
Trends
Daily SMA20 1.2518
Daily SMA50 1.2313
Daily SMA100 1.237
Daily SMA200 1.2608
 
Levels
Previous Daily High 1.2605
Previous Daily Low 1.2538
Previous Weekly High 1.2808
Previous Weekly Low 1.2526
Previous Monthly High 1.2487
Previous Monthly Low 1.2007
Daily Fibonacci 38.2% 1.2579
Daily Fibonacci 61.8% 1.2564
Daily Pivot Point S1 1.2559
Daily Pivot Point S2 1.2515
Daily Pivot Point S3 1.2492
Daily Pivot Point R1 1.2625
Daily Pivot Point R2 1.2648
Daily Pivot Point R3 1.2691

 

 

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.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News


Latest Forex News

Editors’ Picks

EUR/USD licks its wounds ahead of US consumer confidence

EUR/USD is below 1.18 but off the lows. The dollar is paring some of its gains ahead of US Consumer Confidence, final eurozone inflation data and expiry of options on Wall Street. 

EUR/USD News

GBP/USD struggles around 1.38 after weak US Retail Sales

GBP/USD is on the back foot around 1.38 after UK Retail Sales figures disappointed with -0.9% in August, worse than expected. Brexit uncertainty and dollar demand weighed on the pair earlier. 

GBP/USD News

XAU/USD bears seize control as focus shifts to FOMC meeting

Gold witnessed aggressive selling on Thursday and tumbled to over one-month lows. Upbeat US macro data lifted the US bond yields, the USD and exerted heavy pressure. Extremely oversold RSI on hourly charts helped limit losses amid COVID-19 woes.

Gold News

Ethereum Classic Price Prediction: ETC coils up for 40% upswing

Ethereum Classic price shows choppy action as it approaches the lower trendline of an ascending parallel channel. The $52.92 support floor is likely to be tagged before a 40% upswing originates.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more

Forex MAJORS

Cryptocurrencies

Signatures