The US dollar has been quietly slipping against its Canadian counterpart for much of November. Strong Canadian economic data, especially the Oct jobs report, has weighed on the pair.
USDCAD daily chart
The next test is CPI data to be released at the bottom of the hour. The consensus is for a 2.1% y/y rise in both core and headline measures. It’s the only significant economic data before the weekend.
If inflation is strong, there isn’t much to support USD/CAD until 1.12, where there is a confluence of psychological support, the late Oct lows and the 55dma.
With oil bouncing and China cutting, the Canadian dollar could be poised for a rebound.
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