USD/CAD tests lows near 1.3060 on CPI

Pablo Piovano FXStreet

The Canadian Dollar is extending its gains vs. its neighbour on Friday, dragging USD/CAD to fresh daily lows in the 1.3060 region.

USD/CAD weaker post-CPI

CAD met extra upside pressure after January’s inflation figures tracked by the CPI rose more than expected 2.1% on an annualized basis and 0.9% inter-month. Additionally, Core consumer prices measured by the Bank of Canada rose 1.7% over the last twelve months and 0.5% MoM.

Spot has briefly dropped to the 1.3060 area in the wake of the release, where it is now holding against the backdrop of a broad-based selling atmosphere around the buck.

In the US data space, Consumer Sentiment for the month of February is due along with New Home Sales.

USD/CAD significant levels

As of writing the pair is losing 0.29% at 1.3066 facing the next support at 1.3057 (low Feb.17) and then 1.3007 (low Feb.16). On the other hand, a breakout of 1.3118 (high Feb.24) would aim for 1.3148 (200-day sma) and finally 1.3211 (high Feb.22).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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