Minutes from the January assembly of the Fed (“FOMC minutes”) will likely be revealed at 19:00 (GMT). Of the vital macro knowledge, which may also be revealed right now, it’s value noting the publication at 13:30 (GMT) of data on retail gross sales within the US and shopper value indices in Canada, which mirror the dynamics of retail costs of the corresponding basket of products and companies. The inflation goal for the Financial institution of Canada is within the vary of 1%-3%. The rising CPI is a harbinger of a fee hike and optimistic for the CAD. The core shopper value index rose in December 2021 by +4.0% (annualized). Information higher than earlier values will strengthen the Canadian greenback. Forecast for January: +4.6% (annualized) for core CPI and +4.8% (annualized) for CPI. As we will see from the statistics, inflation in Canada can be accelerating, however not as a lot as, for instance, in the US.
If the anticipated knowledge seems to be worse than the earlier values, then this may negatively have an effect on the CAD, and the USD/CAD pair will develop on this case.
Market contributors are additionally evaluating knowledge from the American Petroleum Institute (API), launched on Tuesday. In keeping with these knowledge, oil reserves within the US within the reporting week decreased by -1.076 million barrels. This can be a optimistic issue for oil costs and CAD, and we see that within the first half of right now’s buying and selling day, oil costs and CAD quotes are rising, together with in opposition to the backdrop of a weakening USD.
Within the meantime, usually, the optimistic dynamics of USD/CAD stays. The pair stays within the bull market zone, buying and selling above key help ranges 1.2540, 1.2635.
Help ranges: 1.2675, 1.2635, 1.2600, 1.2540, 1.2455, 1.2290, 1.2165, 1.2010
Resistance ranges: 1.2710, 1.2740, 1.2785, 1.2870, 1.2900, 1.2960, 1.3100
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