The Canadian is losing ground

The Canadian dollar based on the flat data on inflation and retail sales in Canada fell sharply against the US dollar. See Market News

The reduce of inflation, perhaps, is the first signal about the reaction of the Canadian economy to the rise of the interest rate. Therefore, the central bank may need even more time to tighten monetary and credit policy.

Technical analysis: The pair USD/CAD based on the data grew by more than 70 points. At the moment, one should consider the nearest resistance level in the region of 1.2590-1.2600. In the event that the price of the instrument will be able to gain a foothold above the psychology of 1.2600, the pair will open the way to the mark of 1.2670.

Alexander Sivtsov