USD/CAD falls as Canada IPPI exceeds expectations at 6.1% YoY
USD/CAD declined 0.2% to 1.4285 following stronger-than-expected Canadian producer price data. The Industrial Product Price Index (IPPI) rose 6.1% year-over-year in November, surpassing the 6.0% prior reading, while Raw Materials Price Index (RMPI) jumped to 6.4% from 5.8% previously. Month-over-month IPPI came in at 0.9%, tripling the 0.3% estimate. The data marked 14 consecutive months of annual increases, with 16 out of 21 commodity groups showing price gains. Energy and petroleum products led the surge, posting their strongest monthly gain since January. The robust inflation data reinforces the Bank of Canada's cautious stance on rate cuts, providing support for the Canadian dollar. Technical resistance for USD/CAD sits at 1.4350, while support has formed at 1.4250. Traders should monitor upcoming US dollar movements and oil prices, which significantly influence CAD strength.
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