The Loonie continues to soar
Gary Christie August 14, 2020 10:08 PM
The CAD had the best gain of the week against the USD..What's next?
The US Dollar was lower against most of its major pairs on Friday. On the U.S. economic data front, retail sales gained 1.2% on month in July, below the 2.1% estimate from 7.5% in June. Industrial production gained 3% on month in July, in-line with estimates, from a gain of 5.4% in June. Finally the University of Michigan Consumer Sentiment index rose to 72.8 in a preliminary August reading, above the 72 estimate compared to 72.5 in the July final reading. On Monday, we can expect the U.S. Empire State Manufacturing Survey to decline to 14.5 in August from 17.2 in July.
The Euro was bullish against all of its major pairs with the exception of the AUD and JPY. In Europe, the European Commission has reported 2Q GDP at -12.1% (vs -3.6% in 1Q) and June trade balance at 17.1 billion euros surplus (vs 14.5 billion euros surplus expected). France's INSEE has posted final readings of July CPI at +0.8% on year, as expected.
The Australian dollar was higher against all of its major pairs.
Looking at weekly performance, the CAD had the best performance against the USD (+0.64%) and the NZD was under the most pressure (-0.71%).
On a daily chart, the trend remains in play. Price action remains inside a bearish channel. The pair broke key support at the $1.332 area which was resistance back in 2019. The MACD is also trending lower indicating downside momentum. Look for a continuation lower to test Jan lows near $1.2955 unless the pair can make a reversal above the upper declining trend line and the 20-day moving average.
Source: GAIN Capital, TradingView
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.