- USD/CAD struggles to make a decisive move in either direction on Wednesday.
- Annual CPI in Canada dropped to -0.4% in May.
- US Dollar Index stays in positive territory above 97.00.
The USD/CAD pair is trading in a relatively tight range on Wednesday and struggles to determine its next short-term direction. As of writing, the pair was virtually unchanged on the day at 1.3542.
Investors pay no mind to macroeconomic data
The data published by Statistics Canada showed on Wednesday that inflation in Canada, as measured by the Consumer Price Index (CPI), edged lower to -0.4% on a yearly basis in May from -0.2% in April. Moreover, the annual core CPI fell to 0.7% and missed the market expectation of 1.4%. Nevertheless, these figures had little to no impact on the CAD’s performance.
On the other hand, the US Census Bureau announced Housing Starts and Building Permits increased by 4.3% and 14.4%, respectively, in May. The US Dollar Index ignored this data and continues to post modest daily gains near 97.10.
Later in the day, Jerome Powell, Chairman of the Federal Reserve System, will be testifying before the Senate on the second day of the semiannual monetary policy report.
Meanwhile, crude oil is also staying relatively quiet on Wednesday, failing to provide a directional clue to the commodity-related CAD. At the moment, the barrel of West Texas Intermediate (WTI) is flat on the day at $37.90. The US Energy Information Administration’s weekly crude oil stock report could be the next catalyst for the WTI.
Technical levels to watch for
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