The USD/CAD Soars As Retail Sales Dive In Canada

OctaFx Analyst Team OctaFX

The EUR/USD is falling despite positive statistics from the Eurozone where the current account balance surplus grew to 33.3 billion euro, the highest it’s been since May 2016. Analysts predicted a decline to 26.2 billion euro against 31.5 billion euro in July. Investors are wary of the situation in Spain where the government announced today that it may invoke Article 155 of the constitution to suspend the autonomy of Catalonia.

The British pound gained ground today as EU officials said they are preparing for the second round of negotiations with the UK where trade relations will be the centre of focus. The pound received more support from the public sector net borrowings report in the UK which came in at 5.3 billion in September compared to the 5.7 billion forecasted.

The price of USD/CAD grew sharply today despite the positive dynamics of crude oil quotes that traditionally have an influence on the Canadian currency. Some support for the pair has come from the US existing home sales which grew to 5.39 million in September against the 5.30 million forecasted. The main stimulus for the pair’s growth came on the back of weak retail sales in Canada that dropped by 0.3% in August after increasing 0.4% in July and inflation growth of only 0.2% in September against the 0.3% predicted. After the powerful upward movement during the session, we may see positions being fixed ahead of the weekend.

EUR/USD

The EUR/USD was not able to fix above 1.1825 and rolled back. Within the correction, quotations may reach the 1.1730-1.1750 range. The MACD signal line has just crossed the zero point which may be an additional stimulus for an upward movement. The volatility level is likely to remain high due to the continuing crisis in Spain.

GBP/USD

The GBP/USD has shown a strong upward impulse and approached the angled resistance line. Breaking through it may become a stimulus for further growth up to 1.3250 and 1.3400. The RSI on the 15-minute chart recently touched the overbought zone and by the end of the trading week we may see the price decline amid closing positions.

USD/CAD

The USD/CAD has not fixed under the support at 1.2470 and instead grew sharply. Within the rising impulse quotes came close to the local high near 1.2600 and its overcoming may be a trigger for continued purchases. The closest targets, in case of maintaining the current dynamics, will be at 1.2670 and 1.2700. In case of correction, the quotes may return to 1.2550 and 1.2520.

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OctaFx Analyst Team

OctaFX

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