- USD/CAD on the bids after a negative daily performance, ignores WTI run-up.
- Uncertainty surrounding the US-China trade deal, mixed expectations from Canadian Retail Sales seem to play their roles.
With the trade pessimism weighing on the commodity-linked currencies, USD/CAD gives less importance to Oil price increase as the pair rises to 1.3270 by the press time of Asian morning on Friday.
The White House economic adviser Larry Kudlow and the US President Donald Trump’s adviser on China Michael Pillsbury spread downbeat sentiment concerning the US-China trade negotiations. Further, China’s warning to the US for its intervention in the Hong Kong issue can add doubts to any breakthrough in the key October talks between the world’s two largest economies.
On the contrary, the US Agriculture Secretary Sonny Perdue spotted Chinese officials’ readiness to visit the US farms while being optimistic about a deal with the dragon nation.
Elsewhere, Oil prices benefit from the Saudi-led alliance’s strike on Yemen but pessimism spread through Germany’s monthly report, the White House Adviser Peter Navarro and the ex-IMF (International Monetary Fund) Chief Christine Lagarde limits the energy benchmark’s run-up.
Moving on, Canada’s July month Retail Sales will be in the spotlight for now. The headline reading is expected to rise by 0.6% MoM versus 0.0% prior. Though, the Retail Sales ex-autos bears downbeat market consensus of 0.3% growth compared to 0.9% previous readouts. “Sales are expected higher for the month. Two expected drivers include higher gasoline prices that were up by about 3-4% m/m, and higher auto sales,” says Scotiabank.
Technical Analysis
Unless decisively closing below 100 and 200-day exponential moving averages (EMA), 1.3255 and 1.3245 respectively, odds of pair’s gradual rise towards monthly top surrounding 1.3385 can’t be denied.
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