• USD/CAD eased slightly on Friday as greenback dipped as investors assessed the Federal Reserve's policy outlook amid signs that tariffs may be fueling inflation.
• This week served as a litmus test for how Trump's economic policies are impacting the broader U.S. economy.
• A slew of economic indicators for June painted a mixed picture, with strong retail sales, rising consumer inflation, and unchanged producer prices.
• The University of Michigan’s July survey showed an uptick in consumer sentiment and a drop in short-term inflation expectations, though households remained concerned about the potential for renewed price pressure.
• Looking ahead, investors will closely watch Monday’s Bank of Canada Business Outlook Survey for insights into business sentiment amid ongoing tariff-related uncertainty.
• Immediate resistance is located at 1.3767(July 17th high), any close above will push the pair towards 1.3832(50%fib).
• Support is seen at 1.3697(38.2%fib) and break below could take the pair towards 1.3536(23.6%fib).
Recommendation: Good to buy around 1.3720, with stop loss of 1.3660 and target price of 1.3830
