Topic: COZfx: Dollar fell after soft US retail data
COZforex: The US dollar edged lower against the Canadian dollar on Tuesday after data showed that US retails sales rise at a much slower-than-expected rate in April.
USD/CAD touched session lows of 1.0889 and was last trading at 1.0892. COZforex foreign currency senior currency strategist, Paul Chew said, The pair is predicted to find support at 1.0880, and a decline through could take it to the next support line of 1.0859. Meanwhile, the pair is predicted to find its first resistance at 1.0913, and a rise through could take it to the next resistance line of 1.0925.
Market sentiment was hit after the US Commerce Department reported that retail sales rose just 0.1% last month, missing expectations for a 0.4% increase. Retail sales for March were revised up to a 1.5% gain from a previously reported increase of 1.2%.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Core retail sales, which exclude automobile sales, were flat in April, disappointing forecasts for a 0.6% increase. Core sales in March were revised up to a rise of 1% from a previously reported increase of 0.7%
Later today, the Bank of Canada is expected to publish a quarterly review report on the Canadian economy.
(COZ forex UK)