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USD/CAD tested 1.1970 on data

FXStreet (Edinburgh) - USD/CAD briefly tested session highs in the area of 1.1970 following the US docket on Thursday.

USD/CAD now focuses on BoC

The pair attempted a correction higher although it’s proven to be ephemeral after the better than expected Initial Claims in the US economy, dropping more than estimated 265K in the week ended on May 8. On the opposite direction, US Producer Prices contracted more than initially anticipated 0.4% MoM and 1.3% on a year to April.

Canadian New Housing Price Index came in flat on a monthly basis and gained 1.2% YoY. Ahead in the session, the semi-annual BoC Review is next preceding the speech by BoC’s L.Patterson.

USD/CAD levels to watch

At the moment the pair is losing 0.13% at 1.1941 and a breakdown of 1.1918 (low May 14) would open the door to 1.1900 (psychological level) and then 1.1836 (low Jan.12). On the other hand, the next resistance aligns at 1.2028 (high May 13) ahead of 1.2107 (high May 12) and then 1.2128 (21-d MA).

Wholesale prices in the US unexpectedly dropped in April

The official data released on Thursday showed the inflation measures by the Producer Price Index (PPI) or Wholesale prices dropped in April indicating the inflation could remain low in the short-term as expected by the Fed.
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USD/CAD might dip to 1.1860 levels – FXStreet

FXStreet Editor and Analyst, Dhwani Mehta, expects USD/CAD to re-test 1.19 levels, breaking below which might pave way for 1.1860 levels.
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