Home Markets USD/CAD pulls back from weekly highs, returns around 1.2900 after US/Canada data

USD/CAD pulls back from weekly highs, returns around 1.2900 after US/Canada data

USD/CAD pulls back from weekly highs, returns around 1.2900 after US/Canada data
  • USD/CAD trimmed some of its intraday gains amid a modest dollar pullback following US PCE inflation data.
  • The current decline in crude oil prices undermined the loonie and continued to provide some support.
  • The monthly report on Canadian GDP did not serve to boost the currency.

The pair USD/CAD It quickly pulled back a few pips from the weekly high following US and Canadian macro data, and was last seen trading around 1.2900 during the early American session.

The US Bureau of Economic Analysis reported that the core personal consumption price index (PCE) – the Fed’s preferred gauge of inflation – rose 0.3% month-on-month in May. This figure was slightly lower than the 0.4% forecast and was in line with the previous month’s reading. Furthermore, the annual rate moderated in line with expectations, to 4.7% from 4.9% in April.

Additional data revealed that personal spending growth slowed markedly to 0.2% in May and the previous month’s reading was also revised down to 0.6% from 0.9% initially reported. The weaker data, coupled with a further decline in US Treasury yields, forced the dollar to trim some of its intraday gains and capped the USD/CAD pair.

However, the decline remains cushioned by the ongoing pullback in crude oil prices, which tends to undermine the commodity-linked loonie. The worsening of the global economic outlook, which could slow the recovery in fuel demand, and the increase in fuel inventories in the US pushed crude prices away from the maximum of a week and a half reached the previous day.

This largely overshadowed Canada’s monthly GDP report, which showed the economy expanding 0.3% in April. This marked a sharp slowdown from the 0.7% growth recorded the previous month. However, the pullback data did not serve to give a significant boost to the Canadian dollar or to influence the USD/CAD pair.

Technical levels


Last Price Today 1.2888
Today’s Daily Change -0.0005
Today’s Daily Change % -0.04
Today’s Daily Opening 1.2893
20 Daily SMA 1.2821
50 Daily SMA 1,282
100 Daily SMA 1.2735
200 Daily SMA 1.2678
Previous Daily High 1.29
Previous Daily Minimum 1.2844
Previous Maximum Weekly 1.3039
Previous Weekly Minimum 1,289
Monthly Prior Maximum 1.3077
Previous Monthly Minimum 1.2629
Daily Fibonacci 38.2% 1.2879
Daily Fibonacci 61.8% 1.2865
Daily Pivot Point S1 1.2858
Daily Pivot Point S2 1.2823
Daily Pivot Point S3 1.2802
Daily Pivot Point R1 1.2914
Daily Pivot Point R2 1.2935
Daily Pivot Point R3 1,297

Source: Fx Street



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