• USD/CAD held steady on Friday after data showed a rise in US import prices, while consumer sentiment stayed weak, keeping the pair in consolidation mode.
• The Labor Department reported that import prices rose 0.1% in April, rebounding from a 0.4% drop in March, as higher capital goods costs offset a decline in energy prices.
• A separate report from the University of Michigan showed its Consumer Sentiment Index fell to 50.8 in May, below the 53.4 forecast and down from 52.2 in April.
• This week, a 90-day pause in the U.S.-China tariff conflict and a new U.S.-UK trade agreement boosted hopes for further trade deals and helped ease fears of a global recession..
• Markets have lowered expectations for Fed rate cuts this year amid easing trade tensions, now pricing in a 65.9% chance of a 25 bps cut at the September meeting.
• Immediate resistance is located at 1.403323.6%fib), any close above will push the pair towards 1.4075(Higher BB).
• Support is seen at 1.3915(38.2%fib) and break below could take the pair towards 1.3820(50%fib).
Recommendation: Good to buy around 1.3980, with stop loss of 1.3900 and target price of 1.4050
