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USD/CAD falls below technical support as inflation data looms this afternoon

Following on from a slightly earlier headline, noting the drop in the USD/CAD today, the US dollar has now dipped below its 200 day moving average (1.3464). However, it has not extended too far below it yet. The drivers for this break would appear to rest with higher oil prices today, although off their earlier tops now, and the prospect of higher Canadian inflation reports due to be released this afternoon. The markets are expected a quite notable increase in Canadian CPI this afternoon. The forecast is for annualised CPI to have risen to 3.8% in August, from 3.3% in July. The core rate is expected to remain unchanged, at 3.7%. So, much will depend on what this data reveals, if the USD/CAD is to extend this current move lower, or not. The USD/CAD has traded to as low as 1.3456 so far. It is just now at 1.3458

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