USD/CAD Pair Drops Briefly on Upbeat Canadian Data, Quickly Recovers

The  USD/CAD currency pair today briefly plunged lower after the  release of  positive Canadian inflation data, before quickly reversing higher. The  currency pair managed to  sustain its upward trend, which was in  place from the  start of  today’s session, largely due to  the  depressed global oil prices.
The  USD/CAD currency pair today dropped back to  its daily lows set at  1.3184 following the  upbeat Canadian data, before rallying to  a  high of  1.3258.
The  currency pair opened today’s session on  an  upward trend given that global oil prices continued to  plunge lower as  tracked by  the  West Texas Intermediate, which hit a  low of  50.60. The  release of  the  Canadian consumer price index data for  October early in  the  American session triggered the  massive pullback in  the  pair as  the  data beat expectations. According to  Statistics Canada, the  country’s consumer inflation was recorded at  0.3% in  October, which translated into an  annualized 2.4%; both prints beat estimates by  0.2%. The  Canadian retail sales data for  September was mixed with the  headline print beating expectations by  0.2% and  the  core print missing expectations by  the  same margin.
The  release of  the  flash Markit US manufacturing and  services PMIs triggered a  decline by  the  pair as  both prints missed expectations leading to  a  weaker greenback as  tracked by  the  US Dollar Index.
Given the  upcoming weekend, the  currency pair’s future performance is likely to  be affected by  global oil prices and  geopolitical events.
The  USD/CAD currency pair was trading at  1.3229 as  at  15:39 GMT having rallied from a  low of  1.3184. The  CAD/JPY currency pair was trading at  85.24 having declined from a  high of  85.67.

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