- USD / CAD rises towards the 1.2700 area.
- Market sentiment is mixed, with European stocks rising while US indices fall.
- US retail sales rose unexpectedly, boosting the US dollar.
The USD / CAD it is recovering in the American session. The pair is trading at 1.2687, an increase of 0.50% due to better-than-expected US retail sales data and falling oil prices, dragging down the Canadian dollar at the time of writing.
Market sentiment is mixed. In Europe, the main stock indices are rising. Meanwhile, all three major indices are down in the US, with US 10-year yields soaring three basis points to 1,336%.
Mixed US Economic Data Boosts US Dollar
In the United States, retail sales surprisingly improved in August, rising 0.7% versus -0.8% expected by economists. Commenting on the US data, “The US consumer was away from home in August, contrary to the University of Michigan’s depressing 10-year low in its Consumer Sentiment Index,” said the FXStreet analyst Yohay Elam.
At the same time, the Initial Unemployment Claims report, ignored by expected Retail Sales, rose to 332,000 from 328,000, worse than expected.
Despite the mixed data, the US Dollar Index (DXY), which measures the dollar’s performance against six pairs, is up nearly 0.5 at 92.95, just shy of the 93.00 psychological level.
In Canada, the Housing Initiative increased to 260,200 from 270,700. In addition, total sales for July fell 2.1% compared to the -2% expected by economists.
Technical levels
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