USD/CAD Stays Near 1.3700 Ahead of US and Canada Inflation Data
The USD/CAD pair is moving slowly around 1.3705 as traders wait for the important US CPI and Canada CPI reports. These inflation numbers are likely to bring strong price movements once released.
Recently, the US announced a new 35% tariff on many goods imported from Canada, starting August 1. This adds to earlier tariffs on Canadian steel, aluminum, and now includes copper. These trade actions could hurt the Canadian dollar (CAD), especially since Canada exports these materials to the US.
However, strong Canadian job data is helping to support CAD. In June, Canada added over 83,000 new jobs, and the unemployment rate dropped to 6.9%, which was better than expected. This boosts hopes that the Bank of Canada may delay interest rate cuts.
From a technical view, the USD/CAD pair is staying slightly above its 20-day Exponential Moving Average (EMA). This shows short-term support. But traders are waiting for CPI results before making big moves.
Key levels to watch:
* Resistance around 1.3730–1.3750
* Support near 1.3650, which has held up in recent days
Impact :
If US inflation is stronger, USD/CAD could move higher. But if Canada’s CPI also rises or the job data stays strong, CAD might gain and pull the pair lower.