USD/CAD nears 1.3400 after soft inflation data
The Canadian dollar is trading at a two week low after misses in inflation and retail sales data. The turnaround started Wednesday with Bank of Canada Governor Poloz saying a rate cut was still on the table if downside risks materialized. He also repeatedly underscored the high level of risks and uncertainties surrounding forecasts.
The high of 1.3388 in the aftermath of the data matches the January 2 low and that's offering some minor resistance, along with offers at 1.3400.
What's minimizing the pain in the Canadian dollar so far is oil, which is up 80-cents to $52.70. Crude continues to consolidate around $52.00 as volatility abates and the market sorts out if OPEC will comply and what might be the next move from the cartel.
As for USD/CAD, the break below the channel has been rejected in a big way. There is some resistance to chew on before a retest of 1.36 but the next move likely relies on Trump and the US dollar.
