Instrument: USDCAD
Technical Analysis
Bullish Preference:
Buy position is envisaged if price trades above 1.27090 with take profit at 1.27226.
Bearish Preference:
Sell position is envisaged if price trades below 1.26641 with take profit at 1.26510.
Fundamentals: 1:30pm CAD CPI m/m
Comment: Tuesday’s softer-than-expected US CPI report suggested that the big surge in inflation this year may have peaked and eased fears for an earlier than expected tapering by the Fed. This was evident from the steep decline in the US Treasury bond yields, which prompted some intraday selling around the USD and weighed on the USD/CAD pair. However, a turnaround in the US equity markets revived demand for the safe-haven USD.
Analysis: SCRUM Team