USD/CAD Flat, Wholesale Sales Rebounds

USD/CAD is unchanged in Friday trade. Currently, the pair is trading at 1.3573, down 0.01% on the day. It’s a quiet day on the fundamental front, so we can expect a subdued day for USD/CAD.

Canada Wholesale Sales Rebound

Canadian consumers have held tight to their purse strings, as the economic uncertainty has resulted in many people sticking to essential purchases and foregoing luxuries. This resulted in abysmal retail sales numbers in April – the headline figure fell by 26.4%, while the core reading declined by 22.0%. Wholesale Sales also looked awful in April, dropping 21.6%. However, in May the indicator bounced back with a gain of 5.7%. Although this was short of the estimate of 7.4%, this could signal that consumer spending will also rebound in next week’s release.

US Construction Data heads higher

In the US, construction numbers moved higher in June. Building Permits came in at 1.24 million, up slightly from 1.22 million. Still, this was well short of the estimate of 1.30 million. Housing Starts climbed to 1.19 million, up nicely from 0.97 million beforehand. Today’s key event is UoM Consumer Sentiment, which is expected in at 79.0, almost unchanged from the previous release of 78.9.

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USD/CAD Fundamentals

Friday (July 17)

  • 8:30 Canada Wholesale Sales. Estimate 7.4%
  • 8:30 US Building Permits. Estimate 1.30M
  • 8:30 US Housing Starts. Estimate 1.17M
  • 10:00 US Preliminary UoM Consumer Sentiment. Estimate 79.0

*Key events are in bold

*All times are EDT

USD/CAD Technical

USD/CAD has shown limited movement in the Asian and European sessions. The pair is flat early in North American trade.

  • 1.3522 is providing support. Below, we find support at 1.3473
  • The 20-day MA is located just above the pair, at 1.3582. A break above this line would be bullish for the pair
  • 1.3601 is the next line of resistance, followed by resistance at 1.3631

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Kenny Fisher

Kenny Fisher

Market Analyst at OANDA
A highly experienced financial market analyst with a focus on fundamental analysis, Kenneth Fisher’s daily commentary covers a broad range of markets including forex, equities and commodities. His work has been published in several major online financial publications including Investing.com, Seeking Alpha and FXStreet. Based in Israel, Kenny has been a MarketPulse contributor since 2012.