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COZfx: USD/CAD off highs after Canadian retail sales data

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COZfx: USD/CAD off highs after Canadian retail sales data

Postby dwang » Fri Jan 24, 2014 2:27 am

COZforex: The US dollar pulled back from 4 1/2 year highs against the Canadian dollar on Thursday as a sharper-than-expected increase in Canadian retail sales prompted investors to take profits.

USD/CAD retreated from 1.1174, the highest since July 2009, to trade at 1.1105, just 0.18% higher for the day. Coz forex senior derivatives trader Daniel • Moloney said, USD/CAD is predicted to find support at 1.1012, and a drop through could take it to the next support line of 1.0878. Meanwhile, the pair is predicted to find its first resistance at 1.1219, and a rise through could take it to the next resistance line of 1.1292.

The Canadian dollar found support after official data showed that retail sales rise 0.6% in November, surpassing expectations for a 0.3% increased, recovering from a 0.1% decline in October.

Statistics Canada said core retail sales, which exclude auto sales, rise 0.4% in November, slightly higher than forecasts for a 0.3% gain, but slowing from growth of 0.5% in October.

The loonie, as the Canadian dollar is also known, remained under pressure after the Bank of Canada expressed concern over the inflation outlook on Wednesday, and left the way open for a rate cut, saying the path of the next rate move would depend on economic data.

In the US, data on Thursday showed that initial jobless claims rise in line with expectations last week, but the number of continuing jobless claims remained above the three million mark for the second successive week.

The number of people who filed for unemployment assistance in the US last week rise to 326,000, the Labor Department said, up from the previous week’s revised total of 325,000.

However, the number of people filing continuing unemployment claims rose to 3.056 million up from 3.022 million in the week to January 11. Analysts had expected continuing claims to fall to 2.930 million.


(COZ forex UK)
dwang
 
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