USDCAD SIGNAL 19-04-22 : USDCAD bears take on the bulls at 1.26 the figure as oil remains firmly bid.

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USDCAD SIGNAL

USDCAD SIGNAL 19-04-22 : USDCAD bears take on the bulls at 1.26 the figure as oil remains firmly bid.

  • USD/CAD is being forced back by the rise of oil prices. 
  • Traders will now look to the Canadian inflation report this week. 

USDCAD SIGNAL : USDCAD is a touch heavy in the Tokyo open, turning red on the day so far and testing 1.26 the figure at the time of writing, sliding from a high of 1.2634 scored on the rollover between New York and early Asia.  

Overall, it’s been a US dollar story at the start of the week which is starting to give back some ground. In the case of CAD, oil prices have steadied as well which is providing support to the loonie as investors await inflation data due this Wednesday.

USDCAD SIGNAL Investors will be looking to the Consumer Price Index for March that could help guide expectations for further tightening from the Bank of Canada following last week’s half of a percentage point increase to 1%. This was its biggest single hike in more than two decades and done in an effort to try to limit inflation.

We look for CPI to firm to 6.1% YoY in March, with prices up 0.9% MoM, analysts at TD Securities explained.   ”Energy will provide the main driver, led by an 11% increase in gasoline, alongside another significant contribution from food. Motor vehicles, clothing, and shelter should help drive strength in the ex. food/energy aggregate, while the BoC’s core inflation measures should firm to 3.6% y/y on average, the analysts at TDS said. 

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