FxWirePro: USD/CAD edges higher as investors digest U.S,Canadian inflation data

• The USD/CAD pair moved slightly higher on Tuesday as investors digested inflation readings from both Canada and the United States.

• U.S. consumer prices rose the most in five months in June, as higher goods costs hinted at tariff-driven inflation, possibly delaying Fed action until September.

• U.S. consumer prices rose 0.3% in June, the largest monthly gain since January, following a 0.1% rise in May. The increase was led by higher rents and a 1.0% rebound in gasoline prices after four months of declines.

• The Fed monitors various inflation gauges to meet its 2% target and is expected to keep its benchmark rate steady at 4.25%–4.50% at this month’s policy meeting.

•Canada’s annual inflation rate climbed to 1.9% in June, in line with expectations, driven by higher prices for automobiles, clothing, and footwear, official data showed on Tuesday.

 • Statistics Canada reported that the economy added 83,100 jobs in Junethe first net employment increase since January with most of the growth concentrated in part-time roles.

• Immediate resistance is located at 1.3733(38.2%fib), any close above will push the pair towards 1.3788(Higher BB).

• Support is seen at 1.3678(20 SMA) and break below could take the pair towards 1.3562(Lower BB).

Recommendation: Good to buy around 1.3690, with stop loss of 1.3620 and target price of 1.3760