USD/CAD tumbles to lows near 1.3570 ahead of CPI

Pablo Piovano FXStreet

The softer tone around the greenback stays unabated at the end of the week, now dragging USD/CAD to fresh daily lows in the vicinity of 1.3570.

USD/CAD focus on CPI

After four consecutive weekly advances, the pair is now headed towards its first weekly close in the negative territory, always against the back on a weaker greenback and a string rebound in crude oil prices.

USD, in fact, has been losing ground since the latest releases of US inflation figures and retail sales for the month of April and the decline has accelerated following the recent Russia-gate with once again President Trump in centre stage.

Crude oil dynamics are also influencing on spot, as the barrel of the American reference for the sweet light crude oil is hovering over the critical $50.00 mark, nearly 4-week peaks, always bolstered by rising hopes of an extension of the OPEC/non-OPEC deal to Q1 2018.

Looking ahead, CAD will be in the limelight as Statistics Canada will publish its Canadian inflation figures for the month of April.

USD/CAD significant levels

As of writing the pair is losing 0.19% at 1.3577 and a break below 1.3565 (low May 19) would open the door to 1.3508 (50% Fibo of the April-May rally) and finally 1.3480 (55-day sma). On the flip side, the next up barrier is located at 1.3649 (20-day sma) seconded by 1.3659 (23.6% Fibo of the April-May rally) and then 1.3671 (high May 18).

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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