USD/CAD: Upbeat Canadian Retail Sales to lift the Loonie, but gains could be short-lived – Scotiabank

USD/CAD is little changed ahead of what should be positive Retail Sales data. However, gains following the figures could be short-lived, according to economists at Scotiabank.

Clear push under 1.3620 should see USD/CAD dip to the 1.3540 zone

“The advance estimate for Canadian Retail Sales suggests a solid 1.5% increase in the Nov month. Not that the CAD will likely react to positive economic news. Positive data should give the CAD a lift but gains may be minor and/or short-lived.”

“Technically, after repeated failures around 1.37, the USD edging below 1.3620 (the low point of the past week’s range and a double/triple top trigger) today should have produced more downside pressure on USD/CAD. That may still develop but the market seems reluctant to bring negative pressure to bear on the USD.” 

“A clear push under 1.3620 should see USD/CAD dip to the 1.3540 zone in the next few days.”