• USD/CAD edged higher but gains were limited on Friday as investors digested cooler-than-expected U.S. inflation data for January.
• U.S. Labor Department data on Friday showed that the consumer price index rose 0.2% last month compared with an estimate of 0.3% from economists polled by Reuters.
• Earlier this week, data indicated the U.S. labour market was stabilizing, with the unemployment rate declining, strong job growth in January, and fewer-than-expected new unemployment claims.
• Stronger-than-expected U.S. jobs data released on Wednesday dampened expectations of near-term rate cuts by the Federal Reserve, weighing on gold and silver prices.
• Oil prices fell further, after a 3% slide on Thursday. U.S. West Texas Intermediate crude was down 0.7% to $62.41 a barrel, while Brent crude futures fell 0.4% to $67.19.
• Immediate resistance is located at 1.3655(38.2%fib), any close above will push the pair towards 1.3680(SMA 20).
• Support is seen at 1.3482(523.6%fib) and break below could take the pair towards 1.3450(Lower BB).
Recommendation: Good to sell around 1.3640 with stop loss of 1.3700 and target price of 1.3570
