fbpx

Canadian dollar down ahead of retail sales

Canadian dollar down ahead of retail sales - MarketPulseMarketPulse

image

Home/FX/Newsfeed/Technical analysis

Share 0

The Canadian dollar is in red territory, with the North American markets yet to open. Currently, USD/CAD is trading at 1.2758, up 0.32% on the day.

US retail sales, jobless claims disappoint

The US economy is struggling, and this grim fact was reiterated over the past two days, as key releases were much softer than expected. Retail sales, the primary gauge of consumer spending, were a big disappointment. Headline retail sales fell by 1.1% and the core reading declined by 0.9%. Both readings were much lower than the street consensus. This was followed by jobless claims, which have now risen in four of the past five weeks. The reading of 885 thousand was much higher than the estimate of 853 thousand, and the highest level since October.

Later today, it is Canada’s turn to release retail sales for October. Much like the US numbers, economists are expecting a sharp slowdown in the upcoming numbers, with a forecast of just 0.1% for both the headline and core readings. In September, the readings were 1.1% and 1.0%, respectively.

Despite the weak economy, the Federal Reserve is sound optimistic about future economic conditions. At the FOMC meeting, the last meeting in 2020, the Fed revised GDP forecasts higher and unemployment lower. The markets were in suspense as to whether the Fed would tinker with QE or remain on the sidelines. In the end, policymakers decided against any new stimulus measures. While the central bank did commit to bond purchases for a longer duration, which does represent an easing of sorts, it didn’t make any changes to the amount of QE, despite the resurgence of Covid-19 which has hit the US. This has given the US dollar some breathing room, as additional easing would have likely sent the greenback to lower levels.

 

USD/CAD Technical

image

 

In the Asian session, USD/CAD broke above resistance at 1.2753. The next resistance lines are at 1.2783 and 1.2815 There is support at 1.2691, followed by a support line at 1.2659 USD/CAD is testing the 10-day MA line for the first time since November 23rd

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 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.

Kenny Fisher

Latest posts by Kenny Fisher (see all)

Original author: Kenny Fisher

Copyright

© MarketPulse

Weekend risk heightened
Prudential Vietnam and SeABank (Vietnam) strengthe...
 

By accepting you will be accessing a service provided by a third-party external to https://chatpips.com/

 
     
 

Broker Search

Latest Spot Rate

 
25 January 2021
RIYADH, Saudi Arabia, Jan. 25, 2021 /PRNewswire/ -- Fund plans to grow its assets under management to USD1.07 trillion by end of 2025 and contribute USD320 billion to Saudi Arabia's non-oil GDP PIF has created 10  new sectors, launched over 30 new co...
25 January 2021
SINGAPORE, Jan. 25, 2021 /PRNewswire/ -- StashAway, Southeast Asia's largest and fastest-growing digital wealth manager for both retail and accredited investors, has announced that they're managing more than US$1billion (SG$ 1.35billion). Since Stash...
25 January 2021
KUALA LUMPUR, Malaysia, Jan. 25, 2021 /PRNewswire/ -- StashAway, Southeast Asia's largest and fastest-growing digital wealth manager for both retail and sophisticated investors, has announced that they're managing more than US$1billion (MYR 4.05billi...
23 January 2021
Key risk events today: ECB President Lagarde Speaks. (Previous analysis as well as outside sources – italics). EUR/USD: Weekly gain/loss: +0.79% Weekly close: 1.2170 Weekly perspective:...
23 January 2021
First, a review of last week's events: - EUR/USD. We published a chart seven days ago that clearly showed how the correlation between the S&P500 index and EUR/USD was broken in early January. But now everything is back to normal: the S&P500 c...
How It Works | About | Contact | Contributors | Privacy Policy | Advertise
© 2009 - 2021 ChatPips. All Rights Reserved. Terms of Use: The content on this website is solely for educational and informational purposes and is not a substitute for official documentation of the original owners. Daily economic news is provided by third-party website. This site is not operated by, sponsored by, endorsed by, or affiliated with any parties in any way. The website owner, the authors, the publishers, and all affiliates of ChatPips.com assume no responsibility or liability for your trading and investment results. You should always check and confirm with several sources with your licensed financial advisor and tax advisor to determine the suitability of any investment before making your final decision. Your continued usage and browsing of information on this website constitute your agreement to this Terms of Use. If you do not agree, please do not proceed to use this website. Brokers Directory: The companies license information were obtained from respective local jurisdiction. All other company and/or product names are trademarks and/or registered trademarks of their respective owners.