- USD / CAD is rising sharply early in the US session.
- Annual CPI inflation in the US rose to 5.4% in June.
- The US dollar index advances above 92.50 following the CPI data.
The pair USD / CAD it gained traction early in the US session and hit a daily high of 1.2522. At time of writing, the pair was up 0.5% on the day at 1.2513.
DXY soars after stronger-than-expected CPI
Renewed USD strength appears to be driving USD / CAD higher on Tuesday. Monthly data released by the US Bureau of Labor Statistics revealed that inflation in the US, as measured by the Consumer Price Index (CPI), jumped to 5.4% in June. This reading beat the market expectation of 4.9% by a wide margin and provided a boost to the dollar. Additionally, the core CPI, which eliminates volatile food and energy prices, rose to 4.5%, compared to analysts’ estimate of 4%.
Reflecting the positive impact of these figures on the USD, the US Dollar Index (DXY) shot up to a daily high of 92.63 before declining modestly. At the moment, the DXY is up 0.3% on the day at 92.52.
Meanwhile, US equity futures turned negative for the day after the IPC report, suggesting that risk aversion flows could allow the USD to continue to outperform its rivals after the bell of opening.
Technical levels
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