USD/CAD Pair Drops Briefly on Upbeat Canadian Data, Quickly Recovers

The USD/CAD currency pair today briefly plunged lower after the release of positive Canadian inflation data, before quickly reversing higher. The currency pair managed to sustain its upward trend, which was in place from the start of today’s session, largely due to the depressed global oil prices.
The USD/CAD currency pair today dropped back to its daily lows set at 1.3184 following the upbeat Canadian data, before rallying to a high of 1.3258.
The currency pair opened today’s session on an upward trend given that global oil prices continued to plunge lower as tracked by the West Texas Intermediate, which hit a low of 50.60. The release of the Canadian consumer price index data for October early in the American session triggered the massive pullback in the pair as the data beat expectations. According to Statistics Canada, the country’s consumer inflation was recorded at 0.3% in October, which translated into an annualized 2.4%; both prints beat estimates by 0.2%. The Canadian retail sales data for September was mixed with the headline print beating expectations by 0.2% and the core print missing expectations by the same margin.
The release of the flash Markit US manufacturing and services PMIs triggered a decline by the pair as both prints missed expectations leading to a weaker greenback as tracked by the US Dollar Index.
Given the upcoming weekend, the currency pair’s future performance is likely to be affected by global oil prices and geopolitical events.
The USD/CAD currency pair was trading at 1.3229 as at 15:39 GMT having rallied from a low of 1.3184. The CAD/JPY currency pair was trading at 85.24 having declined from a high of 85.67.

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