USD/CAD deflates below 1.31, CPI eyed

The Canadian dollar is clawing back some ground lost to its American neighbor, prompting USD/CADto trade back below the 1.3100 handle.

USD/CAD attention to CPI data

Spot is correcting lower after yesterday’s multi-week peaks in the vicinity of 1.3160. Renewed buying interest around CAD following a bounce in crude oil prices is collaborating with the downside, with the barrel of West Texas Intermediate extending its march north of the $49.00 mark, or fresh 2016 highs.

Ahead in the session, Canadian inflation figures tracked by the CPI are due followed by Retail Sales. Consensus expects headline consumer prices to have risen 1.7% on a year to April, while Core CPI is seen at 2.0% YoY. Retail Sales are seen contracting 0.6% MoM in March.

USD/CAD significant levels 

As of writing the pair is losing 0.05% at 1.3087 and a breakout of 1.3155 (high May 19) would aim for 1.3219 (high Apr.5) and then 1.3312 (38.2% Fibo of 1.4692-1.2458). On the other hand, the immediate support aligns at 1.2986 (23.6% Fibo of 1.4692-1.2458) followed by 1.2960 (55-day sma) and finally 1.2820 (20-day sma).