The inflation rate in Canada has been continuously slowing down.

The Canadian dollar has weakened to below 1.35 Canadian dollars per US dollar, while investors await the Federal Reserve's decision on interest rates. Investors are increasingly adopting a negative outlook due to persistent inflation data not showing significant declines. Meanwhile, Canada's inflation rate is showing signs of slowing down once again.

Canada's inflation rate slowed to 2.8% in February, marking a new low since June 2023, giving the Bank of Canada more room to consider monetary easing. This led to significant reductions in the costs of mobile phone and internet services. Additionally, food inflation decreased to 3.3% from 3.9%, while gasoline prices saw a slight increase amidst higher global crude oil prices due to OPEC+ production cuts.

Canada's Industrial Product Price Index increased by 0.7%, rebounding after four consecutive months of decline, driven by higher energy prices. Factory closures and maintenance, along with increased costs of oil and transportation due to disruptions in Red Sea shipping, pushed production costs higher.

Foreign investors increased their investment in Canadian securities by a net $8.88 billion in January, focusing mainly on both short and long-term debt securities, including government and corporate bonds. Foreign investment in government debt securities totaled $21.3 billion, while corporate debt securities amounted to $15.5 billion.

Wholesale sales in Canada increased by 0.1% year-over-year to $82.4 billion in January, rebounding from a 0.3% decline in the previous month. Machinery and equipment sales remained the largest category, indicating a potential resurgence in manufacturing. Conversely, sales of personal and household goods decreased.

The yield on Canada's 10-year government bonds increased by over 3.52%, following movements in US Treasury yields. The number of people receiving unemployment benefits decreased to 209,000, but the unemployment rate remained high at 5.8% in February, indicating a sluggish labor market.

Techical analysis data (5H)

Resistance: 1.3609, 1.3624, 1.3641

Source: Investing.com

Buy/Long 1: If the price touches support in the price range of 1.3558 - 1.3576 but cannot break the support at 1.3576, you may set a TP at approximately 1.3624 and SL at around 1.3544 or according to your acceptable risk.

Buy/Long 2: If the price breaks the resistance in the price range of 1.3609 - 1.3624, you may set a TP at approximately 1.3641 and SL at around 1.3558 or according to your acceptable risk.

Sell/Short 1: If the price touches resistance in the price range of 1.3609 - 1.3624 but cannot break the resistance at 1.3609, you may set a TP at approximately 1.3558 and SL at around 1.3641 or according to your acceptable risk.

Sell/Short 2: If the price breaks the support in the price range of 1.3558 - 1.3576, you may set a TP at approximately 1.3544 and SL at around 1.3624 or according to your acceptable risk.

Pivot point March 20, 2024 08:20 PM. GMT+7