Search ForexCrunch

The Canadian dollar continues recovering, and this time it got a boost from a stronger than expected rise in manufacturing sales for January, despite a downwards revision for December.  Sales advanced by 1.5%, better than 0.6% expected. However, this came on top of a bigger drop of 1.5% in December, worse than 0.9% originally reported.

USD/CAD dropped to a low of 1.1024 from around 1.1040 beforehand. This is the second day of advances for the loonie, that sees a squeezing trading range. — updates coming —

At the same time, the US also released some data: annual headline inflation dropped more than expected while building permits came out better than expected.

Here is the daily chart showing the squeezing trading range:

Canadian dollar strengthening March 18 2014 technical daily chart for currency trading loonie USDCAD

 

The round number of 1.10 works as support. 1050 serves as minor resistance. For more, see the USDCAD forecast.