USD is showing a weak downtrend against CAD during the morning trading session, trying to consolidate below 1.2100.
Despite the rather optimistic US macroeconomic publications on inflation the day before, the positions of USD are still under pressure. The Consumer Price Index rose 0.6% MoM in May after rising 0.8% MoM in April. Market forecasts assumed a slowdown in the indicator to +0.4% MoM. In annual terms, inflation accelerated from +4.2% YoY to +5% YoY, which also turned out to be higher than the forecasts at +4.7% YoY.
Today, in addition to the European G7 summit, the focus of traders will be on the publication of statistics from Canada on the dynamics of capacity utilization for Q1 2021. The markets are also awaiting a speech by the Deputy Governor of the Bank of Canada Paul Beaudry.
Support and resistance
Bollinger Bands in D1 chart demonstrate flat dynamics. The price range is slightly narrowed from below, remaining spacious enough for the current market activity. MACD histogram preserves the uptrend and a weak buy signal (located above the signal line). Stochastic, having approached the level of "80", reversed into a descending plane, responding to the emergence of a "bearish" trend last Thursday.