• The USD/CAD steadied on Wednesday as dollar firmed following an uptick in consumer prices in June, even though producer price inflation data on Wednesday was steady.
• U.S. consumer prices rose at their fastest pace in five months in June, according to data released on Tuesday, driven by higher costs for certain goods.
• U.S. producer prices unexpectedly held steady in June, as rising goods costs—partly due to tariffs on imports were offset by a decline in services.
• U.S. producer prices unexpectedly held steady in June, as rising goods costs—partly due to tariffs on im According to the Labor Department, the Producer Price Index (PPI) rose 2.3% year-over-year in June, coming in slightly below expectations, while showing no change on a month-over-month basis.
• Meanwhile, investors remain focused on tariff developments ahead of the August 1 deadline, when higher trade levies are set to take effect for several U.S. trading partners.
• Immediate resistance is located at 1.3754(Daily high), any close above will push the pair towards 1.3803(50%fib).
• Support is seen at 1.3686(38.2%fib) and break below could take the pair towards 1.3562(Lower BB).
Recommendation: Good to buy around 1.3710, with stop loss of 1.3620 and target price of 1.3770
