CAD CPI Up Next
Looking ahead to today’s US session, CAD traders will be focused on the latest Canadian CPI data due to be released. With the BOC among the most hawkish of the G10 central banks, any data strength today could fuel a sharp uptick in CAD prices near term as the market sharpens its tightening expectations. With that in mind, the market is looking for an unchanged reading on the prior month of 0.3%, creating a low barrier for upside surprises. While an in line reading is unlikely to do much, the focus today will be on an upside surprise which will likely drive CAD higher across the rest of the week.
Where to Trade Canadian CPI?
Today’s weaker-than-expected UK CPI data has turned GBP lower against CAD. With fears rising over the ongoing increase in infection numbers in the UK, there is room for sentiment to weaken further. Currently, the pair is sitting in a block of consolidation mid-range between 1.7198 and 1.7433 after just failing at the upper end of the range. Both MACD and RSI are bearish here, suggesting room for further downside. Bears can look for a break of the 1.7198 level and rising trend line to target 1.7023 initially and 1.6853 thereafter.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.