USD/CAD Extends Downside To Near 1.3200 On Stellar Canadian Retail Sales
Photo by Michelle Spollen on Unsplash
- USD/CAD has dropped sharply to near 1.3210 as Canadian Retail Sales have expanded to 1.1% vs. 0.2% as expected.
- Oil prices are expected to show some action after the release of the oil inventory data for the week ending June 16.
- The US Dollar Index is demonstrating signs of sheer contraction in volatility as investors are awaiting commentary from Jerome Powell.
The USD/CAD pair has witnessed selling pressure as Statistics Canada has reported surprisingly higher Retail Sales data (April). The economic data has expanded by 1.1% while the street was anticipating an expansion of 0.2%. Last month, Canadian Retail Sales contracted by 1.5%.
Upbeat Retail Sales data might force the Bank of Canada (BoC) to raise interest rates further as higher households' demand would eventually propel price pressures.
Analysts at CIBC affirm that some cracks appeared within the Canadian labor market in May, but these “may not yet be wide enough to convince the Bank of Canada that inflation is about to meaningfully cool off.”
Meanwhile, S&P500 futures have extended their losses as the market mood is turning precautionary ahead of Federal Reserve (Fed) chair Jerome Powell’s testimony. The US Dollar Index (DXY) is demonstrating signs of sheer contraction in volatility as investors are expected to build fresh positions after assessing commentary from Jerome Powell.
Investors are keenly focusing on whether Jerome Powell will stick to its prior guidance of pushing interest rates further by 50 basis points (bps) this year or to remain data-dependent.
On the oil front, oil prices are expected to show some action after the release of the oil inventory data by the United States American Petroleum Institute (API) for the week ending June 16.
It is worth noting that Canada is the leading exporter of oil to the United States and higher oil prices will support the Canadian Dollar.
USD/CAD
| OVERVIEW | |
|---|---|
| Today last price | 1.3223 |
| Today Daily Change | -0.0012 |
| Today Daily Change % | -0.09 |
| Today daily open | 1.3235 |
| TRENDS | |
|---|---|
| Daily SMA20 | 1.3414 |
| Daily SMA50 | 1.3459 |
| Daily SMA100 | 1.351 |
| Daily SMA200 | 1.352 |
| LEVELS | |
|---|---|
| Previous Daily High | 1.327 |
| Previous Daily Low | 1.3206 |
| Previous Weekly High | 1.3384 |
| Previous Weekly Low | 1.3178 |
| Previous Monthly High | 1.3655 |
| Previous Monthly Low | 1.3315 |
| Daily Fibonacci 38.2% | 1.3245 |
| Daily Fibonacci 61.8% | 1.323 |
| Daily Pivot Point S1 | 1.3204 |
| Daily Pivot Point S2 | 1.3173 |
| Daily Pivot Point S3 | 1.314 |
| Daily Pivot Point R1 | 1.3268 |
| Daily Pivot Point R2 | 1.3301 |
| Daily Pivot Point R3 | 1.3332 |
More By This Author:
USD/JPY Hovers Around Cycle High On Low Volume SessionGold Price Forecast: XAU/USD Bears Need A Break Of Current Daily Lows
USD/JPY Price Analysis: Breaks To New YTD Highs On USD Strength, Rising Wedge In Focus
Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...
more
Comments
