- 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.
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.
|Last Price Today||1.3563|
|Today’s Daily Change||0.0075|
|Today’s Daily Change %||0.56|
|Today’s Daily Opening||1.3488|
|20 Daily SMA||1.3174|
|50 Daily SMA||1.3002|
|100 Daily SMA||1.2933|
|200 Daily SMA||1.2807|
|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