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USD/CAD tumbles Thursday but is now in a holding pattern ahead of Canadian data

FXstreet.com (Barcelona) - Greenback weakness stemming from political developments in the US sent USD/CAD sharply lower Thursday. But, prices have stabilized somewhat ahead of Canadian CPI data Friday.

USD/CAD traders to key off of Canadian inflation data Friday

The USD/CAD took a beating Thursday as global managers suddenly concluded that no Fed tapering would be implemented any time soon – thereby making it safe to buy Treasuries and sending rates and the DXY sharply lower.

Traders of USD/CAD will be in a holding pattern in all likelihood until the release of Canadian inflation data at around 12:30 GMT Friday. Expectations are for 1.4% inflation Y/Y and 0.3% M/M.

Technical outlook for USD/CAD

Technicians say to key off of 1.0289 support for USD/CAD – a close below that level means a fall to 1.0181 at a minimum while a hold of support could mean a substantial rally up to 1.04 and possibly higher.

What does ECB Draghi think about gold?

President of the European Central Bank, Mario Draghi, said when asked by a member of the audience in the Jhon Kennedy Jr. Forum, "I never thought it wise to sell [gold], because for Central Banks this is a reserve of safety." Draghi added, "in the case of non-USD countries, it gives you good protection against fluctuations of the USD."
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