USD/CAD through 1.2700 post-CPI

FXStreet (Edinburgh) - The renewed weakness around the Canadian dollar is allowing the current rebound in USD/CAD beyond the 1.2700 handle.

USD/CAD firmer on CAD data

The pair has recovered ground towards the low-1.2700s after Canadian consumer prices matched expectations during February: headline CPI rose at an annual pace of 1% while the BoC Core gauge advanced 2.1% over the last twelve months. Adding to the selling pressure in the Canadian dollar, headline retail sales and sales excluding the Autos sector contracted further than forecasted during January, 1.7% and 1.8%, respectively.

USD/CAD levels to watch

As of writing the pair is down 0.11% at 1.2703 with the next support at 1.2628 (50% of 0.9059-1.6197) followed by 1.2507 (low Mar.19) and then 1.2449 (low Mar.18). On the flip side, a break out of 1.2750 (low Mar.17) would aim for 1.2800 (psychological level) and finally 1.2835 (2015 high Mar.18).

Canadian Inflation rose 1.2% year-on-year in February

The data released by Statistics Canada showed today the Consumer Price Index (CPI) rose 1.0% in the 12 months to February, matching the estimate and increase in January.
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Canadian retail sales decline for the second consecutive month in January

The data released by the Statistics Canada showed today that the Retail sales ex-auto decreased for the second consecutive month in January, declining 1.7%, against the expectation of a 0.4% decline. The previous month’s figure stands at -2.3%. Retail sales in volume terms decreased 1.2%.
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