The Canadian dollar (CAD) is returning to very familiar ranges this morning. The spot rate is finding it difficult to move away from the upper 1.35 zone and, with relatively quiet trading today, that may not change in the near term, notes Shaun Osborne, Chief FX Strategist at Scotiabank.
Technical charts are tilted lower for the USD
“Extended periods of trading in tight ranges eventually give way to more dynamic trading in terms of direction, but there is simply no catalyst to drive the move at the moment. The spot rate remains close to the estimated equilibrium (1.3548 today).”
“Canadian retail sales are expected to rise 0.6% in July (Scotia up 0.5%), with sales excluding autos up 0.3%. Retail activity was weak in June, although volume sales advanced marginally. Statcan’s flash estimate for July sales, released with June data, pointed to a 0.6% increase.”
“A weak close on Thursday for the USD developed a large bearish outer range signal on the daily chart, which tilts near-term risks to the downside and should reinforce USD resistance in the mid-1.36 zone from here. Minor gains for the USD today look to be consolidation ahead of further weakness. Loss of near-term support at 1.3535/45 should see USD weakness extend a bit further.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
