USD/CAD hits two-year high above 1.3550 after disappointing Canadian data

- Advertisement -
  • USD/CAD continues to trade in positive territory above 1.3500 on Friday.
  • Data from Canada showed that retail sales declined sharply in July.
  • The dollar retains its strength amid risk aversion ahead of the weekend.

The pair USD/CAD it pulled back towards 1.3500 during European time, but managed to pick up momentum in the second half of the day. At the time of writing, the pair was up 0.6% on the day and is trading at 1.3565, on track to hit its highest weekly close since June 2020.

Broad dollar strength on Friday helped USD/CAD gain traction. Buoyed by safe-haven flows, the US dollar index, which tracks the dollar against a basket of six major currencies, rose above 112.00 for the first time in two decades. With Wall Street’s major indices down more than 1% after the opening bell, the dollar continues to outperform its rivals and does not allow USD/CAD to stage a downward correction.

- Advertisement -

Meanwhile, data released by Statistics Canada revealed that retail sales contracted 2.5% on a monthly basis in July, against the market expectation of a 2% decline. Adding to the disappointing data out of Canada, oil prices were down more than 5% on the day, further weighing on the commodity-sensitive loonie.

Disappointing Eurozone and UK PMI data released earlier in the day reignited concerns about a slowing global economy, prompting investors to price in a worsening outlook for energy demand. . At press time, a barrel of West Texas Intermediate is trading at its lowest level since January, near $79.

- Advertisement -

Technical levels

USD/CAD

Panorama
Last Price Today 1.3563
Today’s Daily Change 0.0075
Today’s Daily Change % 0.56
Today’s Daily Opening 1.3488
Trends
20 Daily SMA 1.3174
50 Daily SMA 1.3002
100 Daily SMA 1.2933
200 Daily SMA 1.2807
levels
Previous Daily High 1.3545
Previous Daily Minimum 1.3409
Previous Maximum Weekly 1.3308
Previous Weekly Minimum 1.2954
Monthly Prior Maximum 1.3141
Previous Monthly Minimum 1.2728
Daily Fibonacci 38.2% 1.3493
Daily Fibonacci 61.8% 1.3461
Daily Pivot Point S1 1.3416
Daily Pivot Point S2 1.3345
Daily Pivot Point S3 1,328
Daily Pivot Point R1 1.3552
Daily Pivot Point R2 1.3616
Daily Pivot Point R3 1.3688

Source: Fx Street

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Hot Topics

Related Articles