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Forex: USD/CAD collapses to 1.0156/58 after Canadian CPI

FXstreet.com (Barcelona) - The USD/CAD has edged higher during European trading Wednesday, having peaked briefly ant an intraday high of 1.0197. The 1.0200 mark proved too much to summit however, and in the aftermath of Canadian economic data, the pair was collapsing towards the 1.0156/58 mark in these moments.

According to the TD Securities Research Team, “We think short-term momentum has turned a little more constructive on the CAD. The market is short CAD (in accordance with recent IMM positioning data) and the loss of support in the 1.0180/85 area yesterday suggests to us that downside risks have increased for funds now. With the market setting a fresh short-term low, we think short-term trend and momentum players will be looking to sell into USD rallies from here now.”

According to the Mataf.net Analyst Team, “We maintain out neutral stance on the USD/CAD as the latest weakness suggests scope for an extension of correction towards support at 1.0137 and then 1.0089. Resistance is at 1.0222 ahead of 1.0285.

In Canada, the Consumer Price Index (YoY) climbed to +1.2% in February, against expectations of only +0.8%. In addition, BoC Consumer Price Index Core (MoM and YoY) has yielded +0.7% in February (against estimates of +0.3%) and +1.4% in the month of February (vs. +1.0% expected) respectively.

Canada Consumer Price Index (YoY) improves to 1.2% in Feb; 1.2% (MoM)

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Canada Feb Consumer Price Index - Core (MoM) rises to 0.8% vs 0.1% (Jan)

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