USDCAD spot rate: 1.3235 - 1.3240 (as at 8:33am PST)
Technical Support / Resistance:
Key Economic Data Releases:
- U.S. CPI m/m: 0.3% (exp 0.3% / prev 0.1%) y/y: 2.5% (exp 2.5% / prev 2.3%)
- U.S. CPI ex food & energy m/m: 0.2% (exp 0.2% / prev 0.1%) y/y: 2.1% (exp 2.2% / prev 2.2%)
Yesterday, USDCAD had a volatile session initially falling from 1.3245 down to 1.3215 before climbing to 1.3260 – a 4 month high. The pairing would then fall to 1.3220 before re-testing the 1.3260 level a 2nd time and subsequently falling back to 1.3220. Despite the fact oil prices plunged nearly 11% from Monday's high (from $61.26 down to $54.75) the CAD held up fairly well. There was some broad-based USD weakness overnight taking USDCAD from 1.3250 down to 1.3207 after U.S. inflation data came in largely as expected. A report from a senior house democrat that the USMCA trade deal would need to be changed saw USDCAD spike higher re-testing the 1.3260 level for a 3rd time in the past 24 hours. The pairing has since fallen back towards 1.3230. Currently, the TSX and the DJIA have given up earlier gains and are down 0.19% and 0.61% respectively. EURCAD is up 0.20% trading between 1.4908 and 1.5019. GBPCAD is up 0.46% trading between 1.7063 and 1.7250 – near 15 week highs. JPYCAD is unchanged trading between 0.01159 and 0.01164. Gold is unchanged trading between $1,197 and $1,204USD/oz., silver is up 0.52% trading between $13.87 and $14.07USD/oz., while oil is up 1.50% trading between $55.10 and $57.34 – near 1 year lows.