Forex: USD/CAD storms to 0.9921/27 after Canadian data

FXstreet.com (Barcelona) - The recently released tranche of economic data out of Canada has roiled the CAD during American trading Friday, helping lift the USDCAD to new session highs (0.9929 daily maximum). At the time of writing the pair has jumped to 0.9921/27, notching an advance of +0.46% on the day.

In Canada, the Consumer Price Index (MoM) contracted -0.2% in November, missing consensus expectations of 0.0%. In addition, the Consumer Price Index (YoY) climbed +0.8% in November, against projections calling for a +1.1% growth. The Bank of Canada Consumer Price Index Core (MoM) yielded a result of 0.0% in November, against a consensus of +0.2%. Finally, the Bank of Canada Consumer Price Index Core (YoY) reported a growth of only +1.2%, relative to expectations of +1.3%.

The cross has also been aided by the tepid fall of crude oil prices, which have settled in the region of USD $90.60, or -0.10% in these moments. From a technical point of view the USDCAD is testing resistance at 0.9921 after breaking through previous measures at 0.9894 and 0.9908 respectively. Conversely, the pair is slated to encounter supports at 0.9867, then 0.9854 and finally 0.9840, notes the analyst team at Mataf.net.