USD/CAD starts week with gains

The week has started with strong gains for USD/CAD. In Monday’s North American session, USD/CAD is trading at 1.3293, up 0.67% on the day.

Canada core retail sales decline 

The week ended on a sour note for Canadian releases. Core retail sales declined by 0.4%, down from 15.7% beforehand. This figure missed the estimate of 0.5%. The headline reading slowed to 0.6%, down sharply from 23.7%.  The weak numbers followed a shocker from ADP nonfarm payrolls, which indicated that the economy shed 205.4 thousand jobs in August. This soft reading comes after a sparkling reading of 1.14 million in the previous release. Investors did not appear to be troubled by the weak numbers, as the Canadian dollar held its own against the greenback last week.

There are no tier-1 Canadian events this week, so we can expect US releases to have a magnified impact on USD/CAD. Later in the week, the US releases Manufacturing and Services PMIs.

US Open – Stocks selloff, Oil slumps as Libyan production returns, Gold down on strong dollar, LATAM in focus

 

USD/CAD Technical

  • USD/CAD broke above resistance at 1.3257 in the European session. This is followed by resistance at 1.3312
  • 1.3138 is the first line of support. Below, there is support at 1.3074
  • USD/CAD pushed above the 10-day MA on Friday, which is a sign of an upward trend

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.
Kenny Fisher

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