The Canadian Dollar is currently declining against the USD as inflation came out at 1.4%, lower than the 1.5% expectation. Importantly, the BoC core inflation rate stood at 1.5% y/y, compared to 1.7% y/y in December, further highlighting that the impact does not derive from the reduction in the price of Oil, but can be related to it via the Canadian exports to the US.
The USDCAD pair is currently trading between 1.3112 (Fib. 0%), 1.3143 (Fib. 23.6%) and 1.3162 (Fib. 38.2%), with the Stochastics indicator supporting an upwards movement, while the MACD points downwards. The Loonie is currently supported by the rising price of Oil, which broke through the $56 mark earlier today. As the Loonie’s behaviour suggests, its price could be more linked to its future prospects than to its data releases.
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Dr Nektarios Michail
Market Analyst
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