USD/CAD (current price: 1.3290)
Canadian Core Retail Sales grew by 0.1% in December, in line with the consensus estimate. The CPI Index was below expectations in the same period, with a reading of -0.2%. The positive day in commodities helped the Loonie in closing higher against the USD despite the slightly negative economic indicators. The broad decline in the Dollar also pushed the pair lower after the bullish start in the morning session.
Our assessment: The pair still faces resistance near the 1.3365, with strong support found at 1.3175 and near the 1.30 level. The neutral long-term range between 1.28 and 1.3550 remains intact.
