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Preview: CPI data threatens to add to CAD-pair volatility

It's Canada in focus on the data front at 13.30 GMT with the latest CPI release

We've seen a lot of oil price based weakening of the loonie in recent times and USDCAD ,coupled with general US$ demand is flirting with a break of 1.4000 res/offers

Now we wait to see whether the latest inflation data can take it through or trigger a retreat

Here's the expectations:

Currently 1.3958 we've got to consider the thin liquidity conditions and caution is advised.

High so far has been 1.3971 ahead of good supply between 1.3980-1.4000 having held 1.3900 on the earlier move lower. Full order board here

Technicals are supportive overall but close to an over-bought scenario in many time frames

1.3777 is yesterday's low with 1.4003 on the topside flagging the May 2004 high, then 1.4085 and 1.4100

I reckon a weak number will see further rallies but prepare to fade, while a stronger than expected reading could trigger a substantial retreat

We'll find out soon enough

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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