USD/CAD Challenges 1.3100 Post-Data

USD/CAD Challenges 1.3100 Post-Data

20 May 2016, 15:01
Roberto Jacobs
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USD/CAD Challenges 1.3100 Post-Data

USD/CAD has bounced off sub-1.3100 levels following mixed results from the Canadian docket.

USD/CAD gains capped near 1.3130

The pair manages to keep the trade above the 1.3100 handle after Canadian inflation figures gauged by the headline CPI have come in as expected during April, up 0.3% MoM and 1.7% over the last twelve months. On a brighter side, Core prices measured by the Bank of Canada have surpassed expectations, rising 0.2% MoM and 2.2% on an annualized basis.

Further data showed Canadian Retail Sales contracting more than initially forecasted 1.0% MoM in March. Sales excluding the Auto sector have contracted 0.3% during the same period.

Next on tap and closing the week, Daniel Tarullo, member of the Board of Governors of the Federal Reserve is due to speak followed by the release of April’s Existing Home Sales.

USD/CAD significant levels 

As of writing the pair is up 0.01% at 1.3106 and a breakout of 1.3155 (high May 19) would aim for 1.3219 (high Apr.5) and then 1.3312 (38.2% Fibo of 1.4692-1.2458). On the other hand, the immediate support aligns at 1.2986 (23.6% Fibo of 1.4692-1.2458) followed by 1.2960 (55-day sma) and finally 1.2820 (20-day sma).


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