The U.S. dollar fell to one-week lows against the Canadian dollar on Friday after official data showed that the annual rate of inflation in Canada rose at the fastest pace since February 2012 in June. USD/CAD touched lows of 1.0709, the weakest since July 11 and was last down 0.23% to 1.0734.
The pair was likely to find support at around the 1.0700 level and resistance at 1.0775.
The Canadian dollar strengthened after Statistics Canada reported that the annual rate of inflation rose to 2.4% last month, up from 2.3% in May. Market expectations had been for an unchanged reading. Core inflation, which excludes some food and energy costs, rose to 1.8% from 1.7%.
In the week ahead, the U.S. is to release what will be closely watched data on consumer prices, home sales and manufacturing orders, while Canada is to release data on retail sales.
Tuesday, July 22
- The U.S. is to release reports on consumer price inflation and existing home sales.
- Canada is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity.
- The U.S. is to produce data on unemployment claims, manufacturing activity and new home sales.
- The U.S. is to round up the week with data on durable goods orders.
