USD/CAD clawing back towards 1.27 ahead of CAD CPI, Retail Sales
- The US DOllar gained the upper hand this week, but the CAD may still surprise if CPI, Retail Sales stun.
- Eyes will be on the macro figures as the BoC grapples with a dovish disposition this week.
The USD/CAD is riding on the high side ahead of the European session, trading near 1.2670.
The Dollar took a ride higher against the broader market Thursday, and the Loonie gave up ground against the Greenback. The USD/CAD pair initially hit a low of 1.2585, the CAD spurred on by climbs in the oil market, but the gains were shortlived and the US Dollar came back to push the pair to 1.2675 as oil receded and the Dollar gained against the fx bloc.
Friday sees a doubler-header for the Loonie, with CAD Retail Sales at 12:30 GMT, forecast at 0.3 percent (prev. 0.3), with year-on-year Core CPI for March expected at 1.5 percent (prev. 1.5). The headline figures will be watched closely by CAD traders, as the Bank of Canada (BoC) struck a notably dovish tone following their latest Rate Decision that saw the central bank hold steady on rates, and a miss for CPI and sales figures could push out expectations of a rate increase.
USD/CAD Levels to watch
The recent turnaround for the USD against the Loonie has sent the pair back above the 200-day SMA at 1.2620, with the 50-day EMA providing resistance from 1.2730, and the current bullish play will need to contend with the 50.0 Fibo level at 1.2825, while a bearish turn will be faced with the last low at 1.2530.