USD/CAD (current price: 1.3105)
The Canadian Dollar was among the more active currencies on Friday, as we expected. The Loonie held up well against the Dollar, compared to the other currencies risk-on currencies. The better than expected Canadian CPI Report helped the CAD in the second half of the day. The Monthly CPI Index came in at 0.9% compared to the consensus estimate of 0.3%, as yearly inflation numbers were close to 2%. The pair finished virtually unchanged after the choppy session.
Our assessment: USD/CAD continues to trade in a narrow range in February after testing the 1.30 level. The 200-day Moving Average at 1.3150 and the 1.3175 level provides strong resistance for the cross.
