Photo by Michelle Spollen on Unsplash
 

The USD/CAD pair trades marginally lower around 1.3770 during the European trading session on Thursday. The Loonie pair ticks lower, while the US Dollar (USD) trades stably ahead of the United States (US) Consumer Price Index (CPI) data for November, indicating slight strength in the Canadian Dollar (CAD).

Canadian Dollar Price Today
 

The table below shows the percentage change of Canadian Dollar (CAD) against listed major currencies today. Canadian Dollar was the strongest against the New Zealand Dollar.

At the time of writing, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, flattens around 98.40.

The US CPI report is expected to show that the headline inflation rose to 3.1% year-on-year (YoY) from 3% in October. In the same period, the core CPI – which excludes volatile food and energy items – is estimated to have risen at steadily by 3%.

Higher-than-projected US CPI data for November would weigh on Federal Reserve (Fed) dovish expectations, while soft numbers might boost them.

Meanwhile, the CAD outperforms on expectations that the Bank of Canada (BoC) will not cut interest rates in the near term.

USD/CAD Technical Analysis
 

USD/CAD edges down to near 1.3775 on Thursday. The pair holds below the falling 20-day Exponential Moving Average (EMA) at 1.3872, keeping bears in control. The 20-day EM has rolled over for several sessions and continues to cap rebounds.

The 14-day Relative Strength Index (RSI) sits at 32.46, near oversold after a modest bounce from last week’s extremes, and momentum remains fragile.

A sustained recovery would require a daily close above the 20-day EMA to ease downside pressure that could increase the odds of an upside move towards the round-level figure of 1.3900. Until then, the downbeat setup persists and could strengthen if the spot breaks below the August 7 low of 1.3720.

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