USD/CAD Dips Below 1.34, Hits 6-Week Low
Kenny Fisher | Jul 23, 2020 14:54
The Canadian dollar has gained ground for a fourth successive day. USD/CAD is down 1.3% this week and is at its lowest level since June 10. In the North American session, the pair is trading at 1.3392, down 0.17% on the day. There are no Canadian events on the schedule.
U.S. Jobless Claims Slightly Higher
For the first time since April, weekly unemployment claims were higher than the previous week. Last week’s reading of 1.41 million, up from 1.30 million. Analysts had expected jobless claims to remain steady at 1.3 million. Unemployment and the fear of losing a job have hurt consumer spending, a key driver of economic growth. This could prove a major obstacle to the nascent recovery that we’re seeing in the U.S.
Canada Consumer Data Improves
In Canada, it has been a good week for consumer numbers. May retail sales were excellent – the headline figure came in at 18.7% and the core reading posted a gain of 10.6%. This follows double-digit losses in April. Consumer inflation climbed 0.8% in June, which was a strong improvement from 0.3% in May and marked the sharpest one-month gain since January 2017. The core read gained 0.4% after back-to-back declines. The strong numbers have raised hopes that the economic recovery is under way.
USD/CAD Technical
USD/CAD posted slight losses in the Asian session and posted small gains in European trade. The pair is steady in the North American session.
- 1.3383 is an immediate support level. The 200-MA is also at this line. Below, there is support at 1.3350
- 1.3466 is the next line of resistance, followed by resistance at 1.3516
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.