USD/CAD stays around 1.3300 ahead of CPI

The greenback has lost upside momentum vs. its Canadian peer on Friday, sending USD/CAD to the 1.3300 neighbourhood for the time being.

USD/CAD attention to data, Trump

Spot has deflated from yesterday’s tops in the mid-1.3300s as the buying interest around the Dollar seems to have subsided somewhat ahead of Trump’s inauguration later in the day.

The pair is thus retreating for the first time after two consecutive pullbacks, gaining around 3 cents since weekly lows in the 1.3000 area, while it is now looking to find some stabilization around the 1.3300 zone (Fibo retracement of the 2016 drop).

CAD met some downside pressure as well following a decline in crude oil prices, with the barrel of West Texas Intermediate hovering over the $52.00 mark amidst rising skepticism over the effectiveness of the recent deal between OPEC and non-OPEC countries.

Later in the NA session, Canadian inflation figures tracked by the CPI and Retail Sales are due, along with the speech by Donald Trump, Philly Fed Patrick Harker (voter, hawkish) and San Francisco Fed John Williams (2018 voter, centrist).

USD/CAD significant levels

As of writing the pair is losing 0.20% at 1.3293 and a breach of 1.3250 (low Jan.19) would aim for 1.3016 (low Jan.17) and then 1.3002 (low Oct.19). On the upside, the next hurdle is located at 1.3354 (high Jan.19) followed by 1.3356 (55-day sma) and finally 1.3463 (high Jan.3).