USD/CAD climbs near 1.2900 post-CPI

The Canadian dollar is depreciating further vs. its American neighbour on Friday, with USD/CAD now climbing to fresh highs in the vicinity of 1.2900 the figure.

USD/CAD bid on CAD releases

CAD met extra selling pressure today after Retail Sales and inflation figures in the Canadian economy have missed initial estimates.

In fact, consumer prices have contracted at a monthly 0.2% vs. a forecasted drop of 0.1%, while Core prices have come in flat, matching consensus. Further data saw headline retail sales contracting 0.1% inter-month in June, while sales excluding the Autos sector have also disappointed markets dropping 0.8% vs. a 0.3% gain initially estimated.

Collaborating with CAD-selling, the barrel of West Texas Intermediate has surrendered earlier gains and is now re-testing the $48.00 area ahead of the weekly report by Baker Hughes on US drilling activity.

USD/CAD significant levels

As of writing the pair is advancing 0.76% at 1.2879 and a breakout of 1.2912 (base of the 3-month rising channel prev support now resistance) would aim for 1.2932 (100-day sma) and then 1.2966 (55-day sma). On the other hand, the immediate support aligns at 1.2787 (low Aug.18) followed by 1.2674 (low Jun.23) and finally 1.2651 (low Jun.8).