One of the most interesting publications planned today in the macroeconomic calendar was the one about consumer inflation in March. In fact, today we had several publications of this type, because we saw inflation from the United Kingdom and the eurozone. However, data from Canada affected the FX market the most.
The annual inflation rate in Canada increased to 1.9 percent in March from 1.5 percent in last month. It should be noted that this is the highest inflation rate since December. Transport prices caused an increase in CPI for all products, as gasoline prices fell in March less than in February. Exactly this drop was minus 4.4 percent against an earlier drop by over 11%. In turn, food has risen by 3.6 percent against 3.2% a month earlier.
After the publication, USDCAD currency pair dropped by about 50 pips to the nearest support. Looking on the chart we can spot a potential expanding triangle pattern with the support at the line drawn through the recent bottoms.
Chart: USDCAD. Conotoxia trading platform.
The triangle pattern is usually a trend continuation structure. In this case, it would mean the possibility of continuing the downward trend. If the mentioned above support is broken the USDCAD may fall to 1.3140.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal Opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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