USD/CAD: Interpreting CPI Numbers Through Technical Lens

Hey Traders, in today's trading session we are monitoring USDCAD for a buying opportunity around 1.34630 zone, USDCAD is trading in an uptrend and currently is in a correction phase in which it is approaching the trend at 1.34630 support and resistance area. Adding a fundamental layer, The recent CPI data in the US has shown signs of inflationary pressure, with the core CPI coming in stronger than expected at 0.4%, surpassing the market consensus of 0.3%. This unexpected uptick in inflation has sparked speculation that the Federal Reserve may adopt a more hawkish stance, as Chair Powell's recent comments hinted at a reluctance to implement rate cuts in the near term. As a result, the US dollar has strengthened, leading to potential buying opportunities in USD pairs like USDCAD. The robust CPI figures suggest a possible continuation of USD strength, which could support bullish momentum in USDCAD. Trade safe, Joe.