The Canadian dollar bounced higher after May’s CPI exceeded expectations. The greenback is struggling to consolidate its gains after a tentative break above last month’s peak at 1.3070. The bulls have bought the pullback around 1.2860. A rally above 1.3070 would trigger a runaway rally as selling interests become scarce, paving the way for a recovery above 1.3300. However, a bearish breakout would dent the mood in the short-term and force leveraged buyers to bail out. Then 1.2700 would be the next support.
