USD/CAD – Canada retail sales eyed

The Canadian dollar is down slightly on Thursday. Currently, USD/CAD is trading at 1.3205, down 0.11% on the day.

Federal Reserve minutes boost US dollar

The Fed minutes were downbeat about economic conditions. Members stated concern about Covid-19’s continuing adverse impact on the US economy. As well, members dampened any expectations about using bond purchases to control yields on government bonds. This resulted in yields dipping lower while the dollar showed gains after the minutes were released. The minutes also reiterated a call from Fed Chair Jerome Powell on the need for a stimulus fiscal package to boost the struggling economy. A fiscal package remains stalled in Congress, however, and it’s unclear when there will be a vote in Congress.

On Friday, Canada releases retail sales, the primary gauge of consumer spending. Analysts are expecting a breakout in June. Retail sales are projected to jump 24.7%, while core retail sales are expected to climb 14.5%. If these releases are within expectations, the Canadian dollar could respond with gains.

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USD/CAD Technical

USD/CAD has been grinding sideways on Thursday, as the pair hugs the 1.32 line

  • 1.3256 is the next resistance line. This is followed by resistance at 1.3288
  • 1.3162 is providing support, followed by support at the round number of 1.3100
  • The 10-day MA remains relevant and is situated slightly above the pair

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

Currency Analyst at Market Pulse
Kenny Fisher joined OANDA in 2012 as a Currency Analyst. Kenny writes a daily column about current economic and political developments affecting the major currency pairs, with a focus on fundamental analysis. Kenny began his career in forex at Bendix Foreign Exchange in Toronto, where he worked as a Corporate Account Manager for over seven years.