- USD/CAD price rose ahead of upcoming Canada inflation stats.
- Financial experts expect the nation’s inflation declines in July.
- USD/CAD will next react to upcoming FOMC minutes.
The USD-CAD price climbed to the highest market since 8 August. The surge comes as markets await the upcoming Canada consumer inflation numbers and FOMC minutes. The pair soared to 1.2935, nearly 1.65% beyond this month’s low.
Canadian Inflation & Crude Oil Prices
USD/CAD pair saw price surges as investors awaited the forthcoming Canada inflation stats. Financial experts expect the numbers to indicate the nation’s inflation eased briefly in July. Most economists believe the headline consumer price index plunged to 0.1% from 0.7% in the past month.
Baring the volatile energy and food prices, analysts trust Canada’s inflation plunged to 6.0% from 6.2%. This slump likely emerged due to the somewhat low gas prices. Thus, Canadian inflation could have peaked.
The USD-CAD exchange rate will respond to the recent housing starts data. Experts expect the figures to show housing starts plunged to 262K from 273.8K over the past month.
Still, BoC (Bank of Canada) will likely keep hiking rates in September. The central bank has executed multiple highs in 2022 to battle inflation. The Bank of Canada has hiked rates to 2.50%.
Also, retreated crude oil prices contributed to the USD/CAD soar. The global benchmark Brent plummeted to $92, whereas WTI (West Texas Intermediate) dropped to $88. The Canadian dollar responds to oil prices since the nation is the 3rd-largest oil exporter worldwide.
The pair will likely react to Wednesday’s United States retail sale stats. Also, the FOMC will announce the previous meeting’s minutes. The minutes will clarify July’s deliberations.
The 4hr chart shows USD-CAD rebounded as the dollar surged. The pair climbed to cross the 1.2820 crucial resistance. The hurdle represented the lowest mark on 28 June. Meanwhile, USD/CAD surged beyond the 25 and 50-day MA. The RSI (Relative Strength Index) remained elevated.
More assessment shows USD/CAD created a head & shoulders formation. Thus, it will likely witness a bearish break within the upcoming days. Such a move would see the pair securing support at 1.2765.