CANADIAN DOLLAR GETTING PUMPED TO ITS HIGHEST BIDS IN A WEEK ON US CPI MISS
The Canadian Dollar is getting a leg up as markets turn down the Greenback.
Canada sees little of note on the data docket this week.
Loonie traders aren’t out of the US data woods yet, US PPI and Retail Sales come tomorrow.
The Canadian Dollar (CAD) is catching a bid thanks to a forecast miss on US Consumer Price Index (CPI) inflation figures. The data miss is sending broader markets into risk-on mode as market sentiment improves.
US CPI for October came in lower than markets had initially forecast, and the easing inflation datapoint is giving markets reason to hope that the Federal Reserve’s (Fed) “higher for longer” narrative on interest rates may not prove to be as long as previously thought.
Daily Digest Market Movers: Canadian Dollar finds a CPI-fueled rebound
The CAD is climbing into a five-day high and its highest bids in a week thanks to the US CPI miss.
October’s headline month-on-month US CPI came in at a flat 0.0% against the forecast 0.1%, 0.4% previous.
Annualized CPI printed at 3.2%, down from the previous 3.7% and missing the forecast of 3.3%.
CPI expectations are one forecast markets are eager to have missed as risk appetite surges.
Inflation cooling faster than expected is helping investors climb back into riskier assets, including the Loonie.
This week still sees hefty US data on the calendar, with Producer Price Index (PPI) and Retail Sales for October arriving on Wednesday
Technical Analysis: Canadian Dollar pushing toward 1.37 against US Dollar as markets flip risk-on
The Canadian Dollar (CAD) is heading back into the 1.3700 handle against the US Dollar (USD), taking the USD/CAD pair down from the 1.3850 level for Friday.
Shorts on the USD/CAD will be looking to drag the pair back down towards the 50-day Simple Moving Average (SMA) near 1.3650. Longer-term support is coming from the 200-day SMA currently pushing into the high side of 1.3500.
Tuesday’s downturn on the USD/CAD chart is helping to solidify a potential lower high chart pattern, with a technical resistance zone building in from 1.3750 to 1.3800. Meanwhile, USD bulls will be hoping for a bounce from the rising trendline drawn from July’s swing low into 1.3100
Disclaimer: The content above represents only the views of the author or guest. It does not represent any views or positions of FOLLOWME and does not mean that FOLLOWME agrees with its statement or description, nor does it constitute any investment advice. For all actions taken by visitors based on information provided by the FOLLOWME community, the community does not assume any form of liability unless otherwise expressly promised in writing.
FOLLOWME Trading Community Website: https://www.followme.com
Hot
No comment on record. Start new comment.