USDCAD adds 0.18% at 1.3290 but off the daily highs after the Canada Consumer Price Index (month over month) came in at 0.3% in line with expectations for October, the yearly reading also came as expected by analysts at 1.9%. The monthly core CPI came in at 0.4% topping expectations of 0.3% in October.
Meanwhile, crude oil prices reversed earlier losses and as of writing trades 0.72% at $55.74 per barrel helping loonie to recover against USD.
Bank of Canada pointed out that the risks are to the downside with escalating China-US trade tensions, weak business investment and falling crude oil prices. BoC will possibly wait until the Q1 next year before easing.
USDCAD managed today to break above the 200-day moving average but retreated after the release of the CPI data. The important level for today is the 200-day moving average, if the pair settles above that level then bulls will be in the driver’s seat for the upcoming sessions, while a close below will cancel the recent positive momentum that started late October.
USDCAD will meet resistance at 1.3314 today’s high, a break above that level will target the next resistance at 1.3345 the high from October 10th. On the downside, first support for USDCAD stands at 1.3261 the daily low while a break below might accelerate the fall further towards 1.3212 the 50-day moving average.More content