BoC CPI Preview: What to expect in USD/CAD

By FXStreet FXStreet (Edinburgh) – Canadian inflation figures for the month of September are due later today. Prior surveys expect headline consumer prices to have contracted at a monthly pace of 0.1% and 1.1% over the last twelve months. The Core print, which excludes food and energy costs and is tracked by the Bank Of Canada, sees domestic prices rising 0.3% on a monthly basis and 2.1% YoY.

Lower energy prices and the weaker CAD are cited as the main drivers behind the recent performance of consumer prices, while the BoC has stressed that it remains more focused on the underlying inflation.

In the FX space, “We see limited impact from the inflation report on USDCAD as the BoC is more concerned about a rebound in activity than inflation”, suggested strategists at TD Securities.

Key levels on the upside appear in the 1.3143/62 band, where sits the 50% Fibo retracement of the 1.3459-1.2827 move and the 55-day moving average, followed by 1.3217 (50% Fibo of 1.3459-1.2827) and the psychological handle at 1.3300. On the opposite side, the interim support aligns at the psychological barrier at 1.3000, ahead of the 1.2976/61 band, confluence of the 100-day moving average and the 76.4% Fibo retracement of the …read more

Source:: FX Street