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CAD Can Recover

ByHelen Rush
Published 08/14/2017, 01:47 PM
Updated 07/09/2023, 06:31 AM

USD/CAD may resume the selloff this week. The pair has risen 9 trading days in a row until it reached 1.2752. It looks like it cannot go higher, and it means it’s the right time to focus on fundamentals, which may trigger the pair to slide.

We noted the Canadian economy is doing fine. The labor market show good growth. Retail sales are increasing. GDP has showed average growth of 3.5% during the last 3 quarters.

This week CPI numbers are scheduled for release, and if it exceeds expectations, it will inspire CAD to speed up the gains. There are all chances for such a scenario, as the Ivey PMI price component increased sharply over the previous month.

Besides, we need to pay attention to American data. The weaker the numbers, the larger the selloff in USD. US retail sales on Tuesday may be the needed trigger for US dollar weakness, if we see another weaker-than-expected report.

The next target for USD/CAD is 1.2650 and 1.2600 is to follow.

Latest comments

I believe data on the U.S. retail sales hints out the impact of inflation on consumer spending. The previously released reports show a negative/bearish trend and it's most likely to be the case on the 15th.
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