After climbing to fresh highs near 1.3500 the figure late on Thursday, USD/CAD met some selling pressure and has now returned to the 1.3465/60 band.
USD/CAD attention to CPI results
The pair is retreating for the second consecutive session so far today ahead of Canadian inflation figures due later in the NA session. Prior surveys expect consumer prices to have risen at an annualized 1.8%.
Spot lost upside momentum after briefly testing fresh 5-week tops around the 1.3500 handle during Thursday’s session.
The correction lower has emerged despite positive comments by S.Mnuchin yesterday, while rising yields in both US and Canadian money markets (particularly in the shorter end of the curve) should render occasional pullbacks as shallow.
On the US data front, Existing Home Sales and advanced Markit’s Manufacturing PMI are also due.
USD/CAD significant levels
As of writing the pair is losing 0.03% at 1.3466 and a breakdown of 1.3454 (low Apr.20) would open the door to 1.3402 (23.6% Fibo of the January-March up move) and finally 1.3373 (20-day sma). On the upside, the next hurdle is placed at 1.3501 (high Apr.20) seconded by 1.3536 (2017 high Mar.9) and then 1.3601 (high Dec.28 2016).