USDCAD. Canada’s CPI Report (22 July 12:30 GMT)

Despite the decreasing price of oil and the worsening of several Canadian economic indicators last week Bank of Canada decided to keep the interest rate unchanged. That decision was welcomed by the market.

While the political and economic situation in Canada is not as dire as in England, and the fundamental analysis doesn’t have as much of an effect on the prices, Inflation reports are still not to be dismissed. The CPI is a key economic indicator for Canada at this point.

Crude oil price has a massive impact on CAD. On wednesday last week US “Crude Oil Inventories” report was published and according to the statistics oil inventories keep decreasing and it has a positive impact on oil prices as was as on Canadian dollar, as it is a commodity currency:

USDCAD chart:

Starting from May 2016 there is flat rate movement on USDCAD D1 chart and that is why it is very important to take lines of support (highlighted with orange) and lines of resistance (highlighted with yellow) into the consideration. The value of the indicator of technical analysis “CCI” is in the neutral area and most likely the rate will remain in the narrow price range.