USD/CAD faces barricades around 1.3500 after a bumper rally, oil plunges

• USD/CAD has witnessed an intermediate resistance around 1.3500 after a juggernaut rally.
• US equities witnessed a massive sell-off as retail demand and PPI figures dropped heavily.
• Fed’s Bullard remained restrictive on interest rate projections despite weaker inflation projections.

The USD/CAD pair has witnessed a pause after a juggernaut rally around the psychological resistance of 1.3500 in the early Asian session. The Loonie asset is expected to turn sideways as the US Dollar bulls will need more fuel to extend the rally further. The major witnessed a steep fall amid a plunge in the oil price, which weakened the Canadian Dollar.

S&P500 witnessed an intense sell-off from the market participants after a lower-than-projected release of the United States Producer Price Index (PPI) and monthly Retail Sales data. The fight against stubborn inflation is demanding a cost from the economy in terms of weaker bargaining power in favor of producers and lower productivity due to rising interest rates by the Federal Reserve (Fed).