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Weak Retail Sales Crushes Canadian Dollar – Canadian Dollar Update February 20, 2015

USD/CAD Open: 1.2517-1.2519 Overnight Range: 1.2421-1.2538

The Canadian dollar was rangebound in overnight currency exchange markets. Oil is at $51.52 and gold is at $1,212. US futures are negative. Today, Canada releases retail sales data.

The short term Canadian dollar technicals are negative. For today, USD resistance is at 1.2560. Support is at 1.2341.

The Canadian dollar was strengthening overnight but that all changed this morning on the back of weak Canadian retail sales data (drop of 2%). The Canadian dollar tanked on the news. This is another blow for Canadian dollar bulls as this weak retail sales data only adds to the likelihood the Bank of Canada will cut rates again preemptively to boost Canada’s economy. Falling oil prices has impacted consumer confidence and sectors related to oil and gas services and this does not bode well for the Canadian dollar.

Today’s Suggested Range USD/CAD: 1.2470 – 1.2570

Sincerely,

Rahim Madhavji | Knightsbridge Foreign Exchange
www.knightsbridgefx.com

By Admin | February 20, 2015 | Daily Update | 0 comments

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