FxWirePro: USD/CAD eases as soft US PPI data weighs on dollar

• USD/CAD eased on Thursday after data showed that producer prices were unchanged in July.

•The flat reading in the Producer Price Index for final demand last month followed a revised 0.1% drop in June. Economists polled by Reuters had forecast the PPI rebounding 0.2%..

•Other data showed U.S. unemployment claims rose moderately last week, indicating a stable labor market despite July’s unexpected job losses.

• Meanwhile, a Canadian government source said trade talks with the U.S. were progressing well, with Washington seeking a deal before the August 19 tariff deadline..

•The price of oil, one of Canada's major exports, was trading 2.2% lower at $81.44 a barrel as signs of weaker global demand competed with renewed concerns over supply disruptions.

•Investors globally have worried that elevated energy prices will worsen the inflation outlook.

                                       
•  Immediate resistance is located at 1.3967(Daily highb), any close above will push the pair towards 1.4000 (SMA 20).

• Support is seen at 1.3905 (50%fib) and break below could take the pair towards 1.3982(SMA 20).

Recommendation: Good to sell around 1.3980 with stop loss of 1.4050 and target price of 1.3900