USD/CAD (current price: 1.3052)
Canadian Manufacturing Sales were well above the expected level in January, coming in at 2.3%, with the consensus estimate being 1.4%. The Canadian Dollar was relatively weaker than the other major commodity currencies yesterday, despite the bullish data. U.S. Retail Sales were also way above the expected 0.1%, with a reading of 0.4%. The pair still trades close to the psychologically important 1.30 level, as investors continue to focus on the price of oil.
Our assessment: USD/CAD remains inside a long-standing neutral trading range. Crucial support is below at 1.2850, while resistance is ahead near the 1.3175 level.
