USDCAD is ready to grab the liquidity at the level 135.30
The Canadian dollar strengthened following mixed inflation data in Canada, while weakness in U.S. manufacturing data exerted negative pressure on the dollar. The bullish trend in USD/CAD persists, with resistances at 1.3420 and 1.3350 potentially impeding selling. The Canadian dollar (CAD) gained against many currencies on Tuesday but lost ground against the U.S. dollar (USD), maintaining its position as the top-performing major currency. Despite Canada's Consumer Price Index (CPI) in December mostly meeting expectations, the lack of price growth has reduced the likelihood of a rate cut by the Bank of Canada (BoC) in March. Currently, Canadian money markets see a 34% probability of a rate cut, down from 46% before the inflation release. Overall, the economic landscape is influenced by other factors, such as the annual growth of the Consumer Price Index at 3.4%, compared to the previous period's 3.1%. Annualized residential construction in Canada exceeded expectations, reaching 249.3 thousand for the year through December. Meanwhile, official statements from the Federal Reserve (Fed) continue to diminish expectations of rate cuts. Fed Governor Christopher Waller emphasizes that inflation should follow a gradual path toward 2%. Oil markets are still influenced by geopolitical factors, such as Houthi attacks on civilian cargo ships in the Red Sea.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.