USD/CAD (current price: 1.3487)
The Canadian Dollar faced mixed economic numbers yesterday. The Canadian Core CPI Index was worse than expected with a reading of -0.5%. The Canadian Core Retail Sales number was much better than the consensus estimate, with a monthly growth of 1.5%. The Loonie lost ground compared to the U.S. Dollar following the mixed releases, also declining against the other majors. The pair got close to the 1.35 level in late trading, but it remained inside the long-term trading range.
Our assessment: The pair is now trading in a clear short-term uptrend after hitting a new short-term high yesterday. The rising 200-day Moving Average is well below the current rate at 1.3060.
