- Loonie remains under pressure after last week sell-off.
- USD/CAD up for the third day and holding above 1.3200.
The Canadian dollar fell to the lowest level in almost a year against the US Dollar after the beginning of the US session. A stronger greenback across the board pushed USD/CAD back above 1.3200.
The pair peaked at 1.3221 and it was trading at 1.3215, consolidating above 1.3210 about to post the third daily gain in-a-row.
The US Dollar Index was down marginally but the greenback was higher versus commodity currencies. The Loonie was among the worst performers as it continues to remain weak amid higher US yields and trade tensions. It was unable to benefit today from a recovery in crude oil prices.
USD/CAD Technical levels to watch
To the upside, immediate resistance is seen at 1.3215/25, followed by 1.3270 and 1.3300. On the flip side, support could now be located at 1.3200, 1.3170 and 1.3125 (March high).
Data ahead for the week
In Canada, data to be released during the week includes the May’s Consumer Price Index and Retail Sales number on Friday. “Gasoline prices rose 3.3% in the month, slightly more than the historical norm for that period. This should translate into a 0.5% monthly increase of the headline CPI measure and, combined with a positive base effect, may push the annual inflation rate up 4 ticks to 2.6%. Core prices, for their part, likely continued to rise at a decent pace, reflecting an economy running above potential and rising wages. Based on these factors, we anticipate CPI common to have edged up one tick to 2.0% on a 12-month basis”, said analysts at the National Bank of Canada.
The calendar shows a few US reports that include data on the housing market and Markit