USD/CAD calm at start of week

The Canadian dollar has started the week with slight losses. In the North American session, USD/CAD is trading at 1.3156, down 0.16% on the day.

Canada retail sales soar

The week ended on a high note, as Canada’s retail sales stormed out of the gates in June. The headline figure jumped 23.7%, after a gain of 18.7% in May. The core reading gained 15.7%, up from 10.6% beforehand. Consumer spending was hampered as Covid-19 weighed on the economy, but these readings are another sign that the economic recovery is gaining steam.

On Monday, the Conference Board of Canada (CB) released a report, saying that the recovery from Covid-19 would take longer than anticipated. The CB said that even if the third quarter shows strong numbers, Canada’s economic output would not return to pre-pandemic levels until the end of 2021. The outlook for the economy, added the CB, will depend greatly on the speed of the recovery in the United States, which is Canada’s largest trading partner.

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USD/CAD Technical

 

  • 1.3229 is the next resistance line. This is followed by resistance at 1.3269
  • 1.3154 is a weak support line. The next line is 1.3119, which is protecting the round number of 1.3100
  • The pair has been pressing on the 10-day MA line. If USD/CAD presses above this line, it is a bullish sign for 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.