- USD / CAD is moving lower at the start of the American session on Wednesday.
- January core CPI inflation data in the US fell short of market expectations.
- WTI is moving within a narrow range above $ 58 ahead of the EIA report.
The pair USD / CAD moves under modest downward pressure at the start of the American session on Wednesday and has broken below the 1.2700 level. At the time of writing, the pair was 0.22% on the day at 1.2674.
The DXY Index appears to close lower for the fourth day in a row
The monthly report released by the U.S. Bureau of Labor Statistics on Wednesday showed that the core CPI consumer price index fell to 1.4% in January from 1.6% previously and it was less than analysts’ estimate of 1.5%. The initial market reaction has weighed on the dollar, with the US dollar DXY index falling to a daily low near 90.30.
Commenting on the US inflation data, “while there could still be challenges to recovery in the form of Covid mutations or setbacks in vaccines, the balance of risks is apparently skewing towards higher inflation for longer than we thought was likely just before Christmas“said ING analysts.
On the other hand, the barrel of West Texas Intermediate WTI continues to move within a narrow range above the $ 58 level ahead of the weekly US oil inventory report, allowing USD price action to drive movements in the USD / CAD pair.
On the other hand, the Canadian Prime Minister Justin Trudeau announced on Wednesday that he will invest C $ 15 billion over eight years in public transport to boost job creation. and the economic recovery, possibly helping the CAD to remain resilient against its rivals.
USD / CAD technical levels
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