Back
14 Jan 2015
USD/CAD extends the drop to 1.1930
FXStreet (Edinburgh) - The US dollar is losing its shine now, dragging USD/CAD below the mid-1.1900s after hitting fresh multi-year tops above 1.2000 the figure in early trade.
USD/CAD weaker on US data
Retail Sales in the US economy disappointed investors during December, with headline sales contracting 0.9% inter-month and the core reading dropping 1.0% MoM vs. -0.1% and 0.0% previously estimated, respectively. Export and Import prices extended the ongoing disinflation in the external sector, falling 3.2% and 5.5% on a yearly basis, respectively. According to analysts at BTMU, “there still appears scope for the Canadian dollar to weaken further playing catch up with the lower price of crude oil in the year ahead according to our long-term valuation estimate”.
USD/CAD levels to watch
As of writing the pair is retreating 0.16% at 1.1933 with the immediate support at 1.1843 (10-d MA) ahead of 1.1836 (low Jan.12) and then 1.1805 (low Jan.9). On the upside, a break above 1.2017 (2015 high Jan.14) would open the door to 1.2070 (low Apr.24 2009) and finally 1.2100 (psychological level).
USD/CAD weaker on US data
Retail Sales in the US economy disappointed investors during December, with headline sales contracting 0.9% inter-month and the core reading dropping 1.0% MoM vs. -0.1% and 0.0% previously estimated, respectively. Export and Import prices extended the ongoing disinflation in the external sector, falling 3.2% and 5.5% on a yearly basis, respectively. According to analysts at BTMU, “there still appears scope for the Canadian dollar to weaken further playing catch up with the lower price of crude oil in the year ahead according to our long-term valuation estimate”.
USD/CAD levels to watch
As of writing the pair is retreating 0.16% at 1.1933 with the immediate support at 1.1843 (10-d MA) ahead of 1.1836 (low Jan.12) and then 1.1805 (low Jan.9). On the upside, a break above 1.2017 (2015 high Jan.14) would open the door to 1.2070 (low Apr.24 2009) and finally 1.2100 (psychological level).