USD/CAD breaks below 1.29 on data

The Canadian dollar is picking up pace vs. its American neighbour today, now dragging USD/CAD to sub-1.2900 levels, or session lows.

USD/CAD weaker post-data

Spot has quickly broke below the key support at 1.2900 handle after Canadian inflation figures have come in on the softer side for the month of May. In fact, headline CPI rose at a monthly pace of 0.4% and 1.5% over the last twelve months, vs. estimates at 0.5% and 1.6%, respectively. Core prices gauged by the BoC have risen in line with forecasts 0.3% inter-month and 2.1% on a yearly basis.

CAD is also deriving extra support from the recovery in crude oil prices, sending the barrel of West Texas Intermediate up by more than 2% above the $47.00 mark. Ahead in the session, US oil rig count tracked by driller Baker Hughes is only expected.

USD/CAD significant levels

As of writing the pair is losing 0.59% at 1.2888 facing the next support at 1.2651 (low Jun.8) followed by 1.2590 (low Apr.20) and then 1.2458 (2016 low May 3). On the other hand, a surpass of 1.3086 (high Jun.16) would aim for 1.3145 (high May 30) and finally 1.3191 (high May 24).