• USD/CAD dipped slightly on Tuesday as investors digested mixed inflation data and awaited updates on trade developments.
• Canada’s annual inflation rate dropped to 1.7% in April, driven by lower energy prices, but rising core inflation measures could complicate the Bank of Canada’s decision on future rate changes..
• The overall inflation rate declined to 1.7% in April from 2.3% in March, following the removal of a federal consumer carbon tax, Statistics Canada reported on Tuesday.
• Later Tuesday, finance ministers from the Group of Seven (G7) will meet in Canada to seek unity on non-tariff matters, though reaching agreement may be challenging amid the Trump administration’s focus on advancing U.S. interests.
• Immediate resistance is located at 1.3993(38.2%fib), any close above will push the pair towards 1.4056(Higher BB).
• Support is seen at 1.3913(50%fib)and break below could take the pair towards 1.3821(61.8%fib).
Recommendation: Good to buy around 1.3930, with stop loss of 1.3860 and target price of 1.4000
