Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
USD/CAD Breaking News: Loonie Pops on Inflation Beat

USD/CAD Breaking News: Loonie Pops on Inflation Beat

What's on this page

USD/CAD Analysis

Advertisement

HAWKISH PRESSURE MOUNTS ON BANK OF CANADA TO HIKE RATES

Canada’s inflation data for the January period beat expectations on both core and headline prints. This adds to tightening bets on an already hawkish Bank of Canada. USD/CAD reacted expectedly by ticking lower post-release, outperforming strong US retail sales data coming in at 3.8%.

usdcad economic calendar

Source: DailyFX Economic Calendar

A breakdown of CPI constituents are outlined in the table below:

canadian cpi breakdown
Trading Forex News: The Strategy
Trading Forex News: The Strategy
Recommended by Warren Venketas
Trading Forex News: The Strategy
Get My Guide

CAD has been protected from geopolitical risks due to the rising oil price which rallied as a consequence of a possible Russian invasion. Despite the safe-haven appeal of the dollar, the loonie managed to hold value. All eyes now point to FOMC later today for clues on rate hike aggression.

Oil Forecast
Oil Forecast
Recommended by Warren Venketas
Get Your Free Oil Forecast
Get My Guide

USD/CAD DAILY CHART

USD/CAD daily chart

Chart prepared by Warren Venketas, IG

The Fundamentals of Breakout Trading
The Fundamentals of Breakout Trading
Recommended by Warren Venketas
The Fundamentals of Breakout Trading
Get My Guide

Key resistance levels:

  • 1.2964
  • 1.2797

Key support levels:

  • 1.2640
  • 1.2500

IG CLIENT SENTIMENT DATA POINTS TO SHORT-TERM DOWNSIDE

IGCS shows retail traders are currently prominently long on USD/CAD, with 69% of traders currently holding long positions (as of this writing). At DailyFX we typically take a contrarian view to crowd sentiment, and the fact traders are net-long is suggestive of a bearish disposition.

USD/CAD Bearish
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 21% -11% 1%
Weekly 8% -4% 1%
Learn how to use Sentiment in your trading strategy
Get My Guide

Contact and follow Warren on Twitter: @WVenketas

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES