The Canadian Dollar gained ground against the Greenback yesterday early in the North American session, the USD/CAD rate moved 1.3176 down to 1.3118 as momentum in the pair was bearish during off-shore trade. However, the pair saw a bounce after data released by The Bank of Canada that the Consumer Price Index recorded a modest rise of 0.1% in January with the yearly rate and Bank of Canada’s core CPI decelerating sharply to 1.4% y/y and 1.5% y/y respectively. Currently, USD/Cad is changing hands at 1.3155
On the data front, today sees Current Account figures released by Statistics Canada. The global trade war and lower oil prices continue to weigh on Canadian exports, and the current account continues to rack up deficits. Still, the deficit in Q3 dropped significantly to C$10.3 billion, beating expectations. However, the deficit is expected to jump to C$14.0 in Q4. Also, The Raw Materials Price Index is due for release which rebounded in December, with a gain of 3.8%. The markets are expecting another strong gain in January, with an estimate of 4.1%.
On the technical front, support is at 1.3110 and 1.3050 level. Resistance is at 1.1370 level.