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USD/CAD capped by 1.0980

FXStreet (Edinburgh) - The US dollar is now deflating to the 1.0965/60 band vs. its Canadian neighbour, pushing the USD/CAD away from peaks near 1.0980.

USD/CAD softer on US releases

Softer-than-expected consumer prices in the US economy during August prompted the current knee-jerk in spot to the mid-1.0900s so far, coming down from earlier tops near 1.0980. While market participants wait for the key FOMC gathering/Yellen’s press conference, the NAHB will publish its Housing Market index, expected to improve a tad to 56 for the month of September from 55 previous. “Over the last several weeks the USD has priced in a more hawkish Fed (and globally diverging policies) however we would expect that today’s tone from the Fed is sufficient hawkish to maintain current trends”, noted Camilla Sutton, Chief FX Strategist at Scotiabank.

USD/CAD significant levels

As of writing the pair is losing 0.05% at 1.0963 with the immediate support at 1.0941 (low Sep.17) followed by 1.0938 (30-d MA) and finally 1.0934 (low Sep.10). On the upside, a surpass of 1.1072 (high Sep.16) would aim for 1.1100 (high Sep.15) and then 1.1106 (high Mar.27).

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