USD/CAD – Extends Slide on Weak Greenback, Support to Hold on Oil Ease

The Dollar extended its slide against the Canadian Loonie following stronger than expected rise in Canada’s Headline CPI number, up at 0.8% against forecasts at 0.4%. Canada’s Loonie has also benefited from the market’s risk-on stance which turned sour overnight. While CPI was better-than-forecast, earlier in the week (Tuesday), Canada’s Core Retail Sales underwhelmed at 10.6% against expectations of 11.9%. Canada’s economic recovery, like that of the rest of the world, is uneven.
Canada’s coronavirus toll, while relatively low, saw a rise of 509 new cases while there were 8 new deaths.

USDCAD ForexLiveCharts UK - H1 - 23 July 2020
USDCAD ForexLiveCharts UK – H1 – 23 July 2020

USD/CAD traded to an overnight and one-month low at 1.3400 before rallying to settle at 1.3415. USD/CAD has immediate support at 1.3400 followed by 1.3370 and 1.3340. Immediate resistance lies at 1.3450, 1.3480 and 1.3500. With the US Dollar correcting against the Emerging Markets, the risk currencies will follow suit. Look to buy dips in a likely range today of 1.3380-1.3520.

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