- Hotter-than-expected Canadian CPI exerts some heavy pressure in the last hour.
- Bullish Crude Oil prices add to the selling bias amid a subdued USD price action.
- The downside seems limited ahead of Wednesday’s release of FOMC minutes.
The USD/CAD pair continued losing ground through the early North-American session and tumbled to fresh session lows – around mid-1.3200s – post-Canadian CPI figures.
CAD boosted by bullish Oil prices/hotter CPI
According to the latest report, Canadian headline consumer inflation – as measured by CPI – came in hotter than expected and edged up by 0.5% in July, helping the yearly rate to hold steady at 2.0% as against consensus estimates pointing to a fall to 1.7%.
This against the backdrop of the ongoing bullish run in Crude Oil prices provided a strong boost to the commodity-linked currency – Loonie and exerted some heavy downward pressure on the major though mixed readings from the BoC’s core CPI helped limit the downside.
Meanwhile, a subdued US Dollar price action – despite a goodish pickup in the US Treasury bond yields – did little to lend any support or stall the sharp intraday slide ahead of the next big event risk – the release of the latest FOMC monetary policy meeting minutes.
Technical levels to watch
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