USDCAD lower ahead of Canadian retail sales numbers
Gary Christie November 20, 2020 8:02 AM
Traders watching key support for a possible bounce: Chart
The US Dollar was mixed against all of its major pairs on Thursday. On the US economic data front, Initial Jobless Claims unexpectedly rose to 742K for the week ending November 14th (700K expected), from a revised 711K in the week before. Continuing Claims fell to 6,372K for the week ending November 7th (6,400K expected), from a revised 6,801K in the prior week. The Leading Index rose 0.7% on month in October (as expected), in line with September. Finally, Existing Homes Sales jumped to 6.85M on month in October (6.47M expected), from a revised 6.57M in September, a level last reached in 2006.
On Friday, no major U.S. economic data is expected.
The Euro was bullish against all of its major pairs. In Europe, September Eurozone Construction Output was released at -2.9% on month, vs +2.6% expected.
The Australian dollar was bearish against all of its major pairs.
The USD/CAD declined 35 pips in Thursday's trading ahead of Friday's September retail sales data. Canada is anticipated to report a slight gain of 0.2% compared to 0.4% back in August. Retail sales ex Auto may be flat. The average pip move after the event is around 27 pips in the hour after retail sales are announced. The announcement has been bullish for the USD/CAD in 8 out of the last 12 monthly announcements.
Looking at the chart, the pair is approaching a key support area inside a consolidation are between 1.299 support and 1.342 resistance. A double bottom may still be in play but will not be confirmed until price action breaks above 1.342 resistance. The preference is for a rebound higher towards 1.365.
Source: GAIN Capital, TradingView
From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.
As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.