USDCAD Technicals: Is the Overbought Rally Due for a Correction?

A heavy dose of inflation data is keeping pressure on risk assets, with the US Producer Price Index climbing 1.1% on a month-on-month basis, significantly hotter than the 0.7% forecast. This comes right on the heels of a 4.2% YoY Consumer Price Index print, signaling that inflation remains sticky and the Federal Reserve's restrictive stance is likely here to stay. High borrowing costs are starting to weigh on corporate structures, as seen in Microsoft's recent cloud and gaming division adjustments [1][2]. In the currency markets, central banks are taking center stage. The European Central Bank raised interest rates to 2.4% as anticipated, though…