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 price 1.387
Today Daily Change 0.0119
Today Daily Change % 0.87
Today daily open 1.3751
 
Trends
Daily SMA20 1.362
Daily SMA50 1.3251
Daily SMA100 1.3055
Daily SMA200 1.2876
 
Levels
Previous Daily High 1.3978
Previous Daily Low 1.3707
Previous Weekly High 1.3827
Previous Weekly Low 1.3503
Previous Monthly High 1.3838
Previous Monthly Low 1.2954
Daily Fibonacci 38.2% 1.381
Daily Fibonacci 61.8% 1.3874
Daily Pivot Point S1 1.3646
Daily Pivot Point S2 1.3541
Daily Pivot Point S3 1.3375
Daily Pivot Point R1 1.3917
Daily Pivot Point R2 1.4083
Daily Pivot Point R3 1.4188

 

 

 

Share: Feed news

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


Recommended content

Editors’ Picks

EUR/USD trades sideways below 1.0450 amid quiet markets

EUR/USD trades sideways below 1.0450 amid quiet markets

EUR/USD defends gains below 1.0450 in European trading on Monday. Thin trading heading into the Xmas holiday and a modest US Dollar rebound leaves the pair in a familair range. Meanwhile, ECB President Lagarde's comments fail to impress the Euro. 

EUR/USD News
GBP/USD stays defensive below 1.2600 after UK Q3 GDP revision

GBP/USD stays defensive below 1.2600 after UK Q3 GDP revision

GBP/USD trades on the defensive below 1.2600 in the European session on Monday. The pair holds lower ground following the downward revision to the third-quarter UK GDP data, which weighs negatively on the Pound Sterling amid a broad US Dollar uptick. 

GBP/USD News
Gold price sticks to modest gains; upside seems limited amid USD dip-buying

Gold price sticks to modest gains; upside seems limited amid USD dip-buying

Gold price attracts some follow-through buying at the start of a new week and looks to build on its recovery from a one-month low touched last Thursday. Geopolitical risks stemming from the protracted Russia-Ukraine war and tensions in the Middle East, along with trade war fears, turn out to be key factors benefiting the safe-haven precious metal. 

Gold News
The US Dollar ends the year on a strong note

The US Dollar ends the year on a strong note

The US Dollar ends the year on a strong note, hitting two-year highs at 108.45. The Fed expects a 50-point rate cut for the full year 2025 versus 4 cuts one quarter earlier, citing higher inflation forecasts and a stubbornly strong labour market. 

Read more
Bank of England stays on hold, but a dovish front is building

Bank of England stays on hold, but a dovish front is building

Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures