USD/CAD jumps above 1.33 on dismal Canadian manufacturing sales data

Canadian manufacturing sales decline for the third straight month in December.
Retail sales in the U.S. decrease 1.2% to miss the market expectation by a wide margin.
US Dollar Index drops to 97 area after disappointing data.

Eren Sengezer FXStreet

The USD/CAD pair gained traction in the last hour and rose to a fresh daily high above the 1.33 mark as the loonie came under heavy selling pressure following the disappointing manufacturing sales data. As of writing, the pair was trading at 1.3313, adding 0.46% on the day.

Statistics Canada today reported that manufacturing sales declined 1.3% in December after falling 1.7% in November and missed the market expectation for an increase of 0.2% to weigh on the CAD. "Sales fell in 12 of 21 industries, representing 72.7% of manufacturing sales," Statistics Canada said in the publication.

On the other hand, retail sales in the U.S. contracted 1.2% on a monthly basis in December and the annual PPI slumped to 2% in January from 2.5% in December, both readings falling short of analysts' estimates. The US Dollar Index, which rose to its highest level since mid-December at 97.30 today, lost its traction and was last seen down 0.17% on the day at 97.03. The bearish pressure surrounding the USD is keeping the pair's gains limited for now.

Meanwhile, after Russian energy minister Novak said that OPEC+ was not planning to introduce new output cut proposals in light of Venezuela and forced crude oil prices to pull away from $54 handle. At the moment, the WTI is trading at $53.55, losing 0.7% on a daily basis.

Technical levels to consider

The pair could face the first resistance at 1.3345 (50-DMA) ahead of 1.3375 (Jan. 24 high) and 1.3420 (Dec. 17 high). On the downside, supports are located at 1.3230 (daily low), 1.3195 (Feb. 14 low) and 1.3120 (Jan. 30 low).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.