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17 Jul 2015
CAD/JPY testing lows near 95.50, CPI in focus
FXStreet (Mumbai) - The Canadian dollar continues to underperform its Japanese peer ahead of US open, pushing CAD/JPY near session lows. The Canadian dollar remains undermined across the board ahead of the key CPI figures from both the US and Canada due out shortly.
CAD/JPY drops from 95.78
Currently, the CAD/JPY pair trades -0.23% lower at 95.58, hovering close to session lows reached at 95.54. The cross in CAD/JPY keeps losses this session mainly driven by broad CAD weakness despite expectations of uptick in Canadian consumer price pressures as the focus will remain on the US inflation print.
Canadian Consumer Price Index (CPI) is expected to advance to 1% on an annual basis from 0.9% posted the previous month. It will still be well below the Bank of Canada (BoC) target rate of 2%. Meanwhile, the annual core inflation is estimated to stay put at 2.2%.
If the release comes in line with forecasts, the Canadian dollar could see an improvement, after hitting a six-year low versus its US counterpart on Wednesday. The drop was triggered by the BOC rate cut decision to 0.5% while the MPR was also read highly dovish.
CAD/JPY Technical Levels
To the upside, the next resistance is located at 95.78 (Today’s High) levels and above which it could extend gains 96.07 (July 16 High) levels. To the downside immediate support might be located at 95 below that at 94.65 (July 9 Low) levels.
CAD/JPY drops from 95.78
Currently, the CAD/JPY pair trades -0.23% lower at 95.58, hovering close to session lows reached at 95.54. The cross in CAD/JPY keeps losses this session mainly driven by broad CAD weakness despite expectations of uptick in Canadian consumer price pressures as the focus will remain on the US inflation print.
Canadian Consumer Price Index (CPI) is expected to advance to 1% on an annual basis from 0.9% posted the previous month. It will still be well below the Bank of Canada (BoC) target rate of 2%. Meanwhile, the annual core inflation is estimated to stay put at 2.2%.
If the release comes in line with forecasts, the Canadian dollar could see an improvement, after hitting a six-year low versus its US counterpart on Wednesday. The drop was triggered by the BOC rate cut decision to 0.5% while the MPR was also read highly dovish.
CAD/JPY Technical Levels
To the upside, the next resistance is located at 95.78 (Today’s High) levels and above which it could extend gains 96.07 (July 16 High) levels. To the downside immediate support might be located at 95 below that at 94.65 (July 9 Low) levels.