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USD/CAD offered near 1.3050 post-CPI and ahead of BoC

  • USD/CAD keeps the familiar range in the mid-1.30s.
  • Canada headline CPI rose 2.2% YoY in December.

The Canadian dollar is trading on a volatile note vs. its American counterpart on Wednesday, with USD/CAD now hovering around the 1.3050 region in the wake of key data.

USD/CAD now looks to BoC

The pair is extending the erratic performance so far this week, coming under selling pressure in levels just below 1.3100 the figure, or weekly highs, recorded earlier in the session.

CAD regained some shine after Canadian inflation figures tracked by the headline CPI rose at an annualized 2.2% during December, while Core consumer prices rose 2.0% from a year earlier.

Additional results in the Canadian docket saw the New Housing Price Index rising 0.2% MoM during last month and the Wholesale Trade Sales contracting 1.2% inter-month in November.

Later in the session, the BoC is expected to leave the key interest rate unchanged at 1.75%, while Governor S.Poloz will give a press conference afterwards.

USD/CAD significant levels

As of writing the pair is retreating 0.13% at 1.3053 and a breach of 1.3035 (weekly low Jan.22) would aim for 1.2951 (low Dec.31 2019) and then 1.2884 (monthly low Sep.20 2018). On the upside, the next hurdle comes at 1.3091 (weekly high Jan.22) followed by 1.3104 (2020 high Jan.9) and finally 1.3157 (55-day SMA).

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