Cad Weakens On Mixed Data

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Cad Weakens On Mixed Data

Canadian Dollar Weakens On Mixed Data

The Canadian Dollar (CAD) turned weak once again after the release of mixed economic data. The Canadian Dollar (CAD) is in the lower range as the recent Canadian data was overshadowed by the US economic data.

The data showed a contraction in Canada's New Housing price index for the month of October. This was a good sign for the Canadians as the house prices were at record highs. This has made the housing situation difficult for everyone in Canada.

Canada'S Core Retail Sales Moves Higher

The Canadian Retail Sales (headline) was also in line with forecast, but the core Retail Sales showed a slight jump in September.

In October, the New Housing Price Index (Canada) declined by 0.4% on a m/m basis during October. This was lower than the last reading of 0% and was also lower than the forecast of +0.1%. While the data was down on an m/m basis, it is up by 0.8% on a y/y basis which shows the situation is still very tough.

Canadian Retail Sales were mostly unchanged, near 0.4% on a m/m basis during September. However, Canada's core retail sales surprised the market with a higher reading.

For now, the Canadian Dollar (CAD) appears to have found some ground against the US Dollar. It has also managed to recover some of its recent losses and has sent the USD/CAD lower. This sent the USD/CAD below the 1.4000 level, which shows that CAD is gaining some strength.

Despite this strength, the USD/CAD remains bullish mainly due to the strength of the US Dollar and optimism over Trump's policies.

The technical analysis shows that USD/CAD may turn lower if the pair continues to trade in its sideways channel. However, we will start to see some action in USD/CAD once the pair crosses 1.3830 (location of 50 EMA).

Also, the upcoming Fed's meeting in December will also be closely watched by the USD/CAD traders as they look at the interest rate situation.

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