- USD/CAD lacked any firm direction on the first day of a new trading week.
- A subdued USD demand capped gains; weaker oil prices lend some support.
- Investors now look forward to US/Canadian macro data for a fresh impetus.
The USD/CAD pair lacked any firm direction seesawed between tepid gains/minor losses, around mid-1.31000s through the early European session on Monday.
The pair was seen oscillating in a narrow trading band on the first day of a new trading range and remained well below the previous session's swing highs near the 1.3180 region, touched in reaction to mostly upbeat US economic data and dismal Canadian retail sales figures.
Data released on Friday confirmed that the US economy expanded by 2.1% annualized pace during the third quarter of 2019. This was complemented by an upward revision of the University of Michigan's Consumer Confidence Index and better-than-expected personal income/spending data.
On the other hand, Canadian monthly retail sales plunged by 1.2% in October as against consensus estimates pointing to a 0.5% growth. Adding to this, core retail sales (excluding automobiles) also fell short of market expectations and came in to show a decline of 0.5%.
As investors looked past Friday's diverging US-Canadian macro releases, a subdued US dollar demand failed to impress bullish traders or provide any meaningful impetus. The downside, however, remained cushioned amid a softer tone around crude oil prices.
Oil prices edged lower on the back of Friday's Baker Hughes report, which showed that the US drillers added 18 rigs during the week to December 20. The increase marked the most in a week since February 2018 and weighed on the commodity-linked currency – loonie.
Moving ahead, market participants now look forward to the US economic docket, highlighting the release of Durable Goods Orders data. This coupled with the monthly Canadian GDP growth figures might further contribute towards producing some short-term trading opportunities.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD risks a deeper drop in the short term
AUD/USD rapidly left behind Wednesday’s decent advance and resumed its downward trend on the back of the intense buying pressure in the greenback, while mixed results from the domestic labour market report failed to lend support to AUD.
EUR/USD leaves the door open to a decline to 1.0600
A decent comeback in the Greenback lured sellers back into the market, motivating EUR/USD to give away the earlier advance to weekly tops around 1.0690 and shift its attention to a potential revisit of the 1.0600 neighbourhood instead.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Bitcoin price shows strength as IMF attests to spread and intensity of BTC transactions ahead of halving
Bitcoin (BTC) price is borderline strong and weak with the brunt of the weakness being felt by altcoins. Regarding strength, it continues to close above the $60,000 threshold for seven weeks in a row.
Is the Biden administration trying to destroy the Dollar?
Confidence in Western financial markets has already been shaken enough by the 20% devaluation of the dollar over the last few years. But now the European Commission wants to hand Ukraine $300 billion seized from Russia.