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USD/CAD, EUR/GBP – Investors Brace for Downturn in Canadian Retail Sales

Kenny Fisher

 USD/CAD

USD/CAD is flat in Friday trade. In the North American session, the pair is trading at 1.3281, up 0.01% on the day.

Retail Sales Could Weigh on Loonie

Canadian consumers have not been in the best of moods, as recent retail sales reports have been weak. Investors are braced for more disappointing news on Friday, with the release of September retail sales. The headline release is projected to decline by 0.3%, after a decline of 0.1% in August. The core reading, which excludes the most volatile items that comprise retail sales, has been sputtering. The indicator is expected to decline by 0.1%, which would mark a third successive decline. Further declines in retail sales could sour investor risk appetite, so the Canadian dollar could lose ground in the North American session.

Technical Analysis

The round number of 1.3300 remains active. Currently, it is an immediate resistance line. Close by, 1.3315 is showing resistance.

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On the downside, there is weak support for USD to CAD at 1.3250. The 200-EMA and 50-EMA remain relevant and are acting in a support role. The 200-EMA is currently at 1.3234, while the 50-EMA is at 1.3211, protecting the round number of 1.3200.

EUR/GBP

EUR/GBP is showing some upward movement on Friday. In the North American session, the pair is trading at 0.8590, up 0.29% on the day.

Technical Analysis

The line of 0.8560 continues to provide support. Below, there is support at the round number of 0.8500. On the upside, there is stronger pressure on resistance at 0.8596. EUR/GBP could test this line later on Friday. Above, there is resistance at 0.8700, which has held since mid-October.

EUR/GBP 1-Day Chart
EUR/GBP 1-Day Chart

This article was originally posted on FX Empire

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