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22 Oct 2015
CAD Retail Sales Preview: eyes on USD/CAD
FXStreet (Edinburgh) - Canadian Retail Sales for the month of August are due later today, with market consensus expecting a monthly expansion of 0.1% in both the headline print and the core figure (excluding the Autos sector).
Recent results in the Canadian economy allow investors to expect tepid figures from today’s releases and not to be on the optimistic side. In addition, while market participants continue to digest yesterday’s BoC statement and MPR, it seems that only a big surprise today could be able to have a significant impact on USD/CAD.
USD/CAD has recently regained the 1.3100 handle following the dovish statement from the Bank of Canada. However, the performance of crude oil prices, CAD-US spreads and the potential timing of the Fed’s lift-off seem to return to the fore as the main drivers for the Canadian dollar, at least in the near term.
Technically speaking, the 100-day sma in the mid-1.2900s has acted as a decent support in yesterday’s strong up-move, while the area around 1.3160 (55-day sma) appears as the interim resistance in case of further upside.
Recent results in the Canadian economy allow investors to expect tepid figures from today’s releases and not to be on the optimistic side. In addition, while market participants continue to digest yesterday’s BoC statement and MPR, it seems that only a big surprise today could be able to have a significant impact on USD/CAD.
USD/CAD has recently regained the 1.3100 handle following the dovish statement from the Bank of Canada. However, the performance of crude oil prices, CAD-US spreads and the potential timing of the Fed’s lift-off seem to return to the fore as the main drivers for the Canadian dollar, at least in the near term.
Technically speaking, the 100-day sma in the mid-1.2900s has acted as a decent support in yesterday’s strong up-move, while the area around 1.3160 (55-day sma) appears as the interim resistance in case of further upside.