USD/CAD falls below 0.9950 after Canadian CPI

By fxstreet.com

The Loonie extended gains against the Greenback, after higher-than-expected domestic consumer price index data helped to lower prospects the BoC might cut interest rates.

USD/CAD dropped nearly 20 pips after the data, sliding through the 0.9950 support and printing a fresh 2-day low of 0.9940. At time of writing, USD/CAD is trading at the 0.9945 zone, recording a 0.2% loss on Friday.

As for technical levels, immediate supports for USD/CAD could be found at 0.9925 and 0.9900, while resistances might be faced at 0.9970, 1.0000/10 and 1.0040.

Canada’s consumer price index grew 0.4% in January and 2.5% YoY, surpassing the 2.3% that was expected. Core CPI climbed 0.2% in the same month and 2.1% over the year, exceeding the 1.9% forecast.

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