USD/CAD Heads Towards our TP Target After the Inflation Report - Forex News by FX Leaders
The pullback higher is over now

USD/CAD Heads Towards our TP Target After the Inflation Report

Posted Wednesday, December 18, 2019 by
Skerdian Meta • 1 min read

On Monday we opened a sell forex signal in USD/CAD , as this pair was retracing higher. The trend has been bearish since the beginning of this month, after OPEC+ decided to cut Crude Oil production again, by an additional 50k barrels/day, which helped Oil price climb higher, as well as the CAD, since this currency is closely correlated to Crude Oil.

We decided to go short on this pair , although we should have waited a bit longer, since the pullback continued further to the upside. Now, the price has reversed and USD/CAD is heading towards our take profit target after the inflation report was released.

Inflation declined by 0.1% in November as expected, but the annualized numbers were better. YoY CPI moved higher to +2.2% vs +2.2% expected, up from 1.9% in October. Common CPI remained unchanged at 1.9% against 1.9% expected, as previously. Trimmed mean CPI YoY ticked higher to 2.2% as expected, up from 2.1% previously, while median CPI also increased to 2.4%, against 2.2% expected.

In October,median CPI stood at 2.2% but was revised higher to +2.3%. So, CPI declined in November by 0.1%, but median core CPI number is the highest since 2009. The CAD is climbing higher, which means that USD/CAD continues to slide lower.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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