USD/CAD dips below 1.34, hits 6-week low

The Canadian dollar has gained ground for a fourth successive day. USD/CAD is down 1.3% this week and is at its lowest level since June 10. In the North American session, the pair is trading at 1.3392, down 0.17% on the day. There are no Canadian events on the schedule.

US jobless claims slightly higher

For the first time since April, weekly unemployment claims were higher than the previous week. Last week’s reading came in at 1.41 million, up from 1.30 million. Analysts had expected jobless claims to remain steady at 1.3 million. Unemployment and the fear of losing a job have hurt consumer spending, a key driver of economic growth. This could prove a major obstacle to the nascent recovery that we’re seeing in the US.

Canada consumer data improves

In Canada, it has been a good week for consumer numbers. May retail sales were excellent –  the headline figure came in at 18.7% and the core reading posted a gain of 10.6%. This follows double-digit losses in April. Consumer inflation climbed 0.8% in June, which was a strong improvement from 0.3% in May and marked the sharpest one-month gain since January 2017. The core read gained 0.4% after back-to-back declines. The strong numbers have raised hopes that the economic recovery is underway.

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USD/CAD Technical

USD/CAD posted slight losses in the Asian session and posted small gains in European trade. The pair is steady in the North American session

  • 1.3383 is an immediate support level. The 200-MA is also at this line. Below, there is support at 1.3350
  • 1.3466 is the next line of resistance, followed by resistance at 1.3516

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.