The USDCAD exchange rate receives a little selling beneath the 1.3500 level before the Canadian the Consumer Price Index data.

During Monday’s period, the USDCAD duo traded lower, under 1.3500 mark. The U.S. and Canadian exchanges are off on Monday in observance of Presidents’ Day & Family Day. Traders are expecting more signals coming from the Canada’s CPI for the month of January. That is expected to fall to 3.2 percent Annually from 3.4 percent in Dec. The USDCAD duo is presently trading at approximately 1.3480, up 0.02 percent currently.

Highlights

The USDCAD pair drops at 1.3480, contributing 0.02 percent for the period in question.
The US PPI increased by 0.3% month on month in the month of January. Following a 0.1 percent decrease, the largest increase after Aug.
The increase in the cost of oil may strengthen the CAD and provide an impediment for the dollar versus the. CAD

The USDCAD Fundamental Picture

The U.S.  increased 0.3 percent month on month in the month of Jan. Following a 0.1% decrease, the largest increase since August. The primary PPI, excludes energy and food, increased 0.5 percent monthly in the month of Jan. Compared to estimates of a 0.1 percent increase. The overall PPI up 0.9 percent year on year, whereas the core PPI increased two percent from 1.7 percent in the previous month. Based on the Bureau of Labor Statistics, which published on Friday. The higher than-estimated data shows the persistent character of inflation. That may persuade the Fed to postpone decreasing rates of interest.

On the CAD the forefront, BoC deputy head Toni Gravelle stated during March. – That regulators planned to end the tightening process by the end of 2024 or near the year 2025. Nevertheless, near-term investors created an anticipation that this pattern could accelerate soon. At this point, rising prices for oil may strengthen the Loonie whilst capping the exchange rate’s upward. Since Canada is the main supplier of oil to the USA.

The Canadian PPI is set to be widely watched by market participants. In the coming days, the FOMC notes are slated to be released on Wednesday afternoon. While the Canadian retail sales shall be released on the following day.

Technical Indicators & Signals