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USD/CAD resumes the upside to reach session highs at 1.3785

  • The US dollar appreciates again on Friday and approaches 1.3800.
  • A mixed US Retail Sales report has been overlooked.
  • USD/CAD seen appreciating beyond 1.4000 – TDS.

The US dollar firmed up on Friday to retrace most of the previous day’s losses. The pair has reached a session high at 1.3875, after bouncing near 1.3700 earlier today, and is on track to close the week with a moderate advance.

Subdued reaction to a mixed retail sales report

The greenback has been little changed by the release of a mixed consumption report. Retail sales remained flat in September, against expectations of a 0.2% monthly increase, in a sign that higher food and energy prices might be starting to bite into the cash available for big-ticket purchases.

Consumption data, however, has also shown some positive aspects. The core retail sales (excluding automobiles) increased against expectations at a 0.1% pace.

Beyond that, the USD ends the week in a positive tone, following the strong US inflation figures seen on Thursday, which have boosted expectations for the fourth 0.75% rate hike at November’s monetary policy meeting.

USD/CAD could easily appreciate beyond 1.40 – TDS

Currency analysts at TD Securities see the CAD dropping further which might push the pair beyond 1.40: Even if the next phase of USD strength is not as linear as it has been for much of this year, there is a lot of negative idiosyncratic risk coming the CAD's way with the debt servicing problem for households only in the early days (…) While we have forecast 1.40 into year-end, it is no ceiling and it could very easily get worse for the CAD.”

Technical levels to watch

USD/CAD

Overview
Today last price1.387
Today Daily Change0.0119
Today Daily Change %0.87
Today daily open1.3751
 
Trends
Daily SMA201.362
Daily SMA501.3251
Daily SMA1001.3055
Daily SMA2001.2876
 
Levels
Previous Daily High1.3978
Previous Daily Low1.3707
Previous Weekly High1.3827
Previous Weekly Low1.3503
Previous Monthly High1.3838
Previous Monthly Low1.2954
Daily Fibonacci 38.2%1.381
Daily Fibonacci 61.8%1.3874
Daily Pivot Point S11.3646
Daily Pivot Point S21.3541
Daily Pivot Point S31.3375
Daily Pivot Point R11.3917
Daily Pivot Point R21.4083
Daily Pivot Point R31.4188

Author

Guillermo Alcala

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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