Listen to the latest market mood for the USDCAD pair:

The latest CPI data out of Canada showed a firmer than expected reading. The headline figure came in at +0.7% y/y vs +0.4% expected. The key median and trim readings came in as expected, but the common was a small beat at +1.6% vs 1.5% expected. All in all, this supported the CAD.

The USD has found sellers. Weak retail sales data out earlier in the week, Fed Powell’s dovish comments, and a delayed US stimulus bill all helped weaken the USD.

Therefore, expect USDCAD sellers in the session ahead.

Trade Risks: The main risk to this trade is if there is a sharp fall in the oil market which will weaken the CAD against the USD.