USD/CAD declines after soft US CPI data

FXStreet (Mumbai) - The USD/CAD pair declined to trade at the day’s low after the inflation faced by the households in the US increased at a slower rate than expected in November.

The pair now trades largely unchanged for the day at 1.1629 levels, after having hit a low of 1.1623 after the release of the soft CPI data in the US. Year-on-year the CPI in November increased 1.3%, against the median estimate of 1.4% and down from the October’s rise of 1.7%. Month-on-month prices fell 0.3%, beating the estimated decline of 0.1%. Meanwhile, core inflation also slowed down to 1.7% in November, from 1.8% in October.

On the other hand, Canadian Wholesale sales rose 0.1% in October, missing the median estimate of a 0.2% rise, and down from the previous figure of 1.8%.

USD/CAD Technical Levels

The pair has an immediate support located at 1.1604, under which losses could be extended to 1.1592 levels. Meanwhile, resistance is seen at a daily high of 1.166 and 1.1676 levels.

Big drop in US CPI inflation driven by oil price declines

The Consumer Price Index for All Urban Consumers declined 0.3 percent in November on a seasonally adjusted basis, according to the US Bureau of Labor Statistics. It reported that over the last 12 months, the all items index increased 1.3 percent before seasonal adjustment.
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GBP/USD jumps to the upper side of the range at 1.5730

The British Pound rebounded in the MA 200 hours level of 1.5690 against the US dollar and following a weak US inflation report, the GBP/USD jumped to the upper part of recent range near 1.5730.
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