Open trading account - USD/CAD extends the decline from earlier this week, with the pair slipping to a fresh weekly low of 1.2742 as Canada Retail Sales beat market expectations; will keep a close eye on the downside targets following the failed test of the monthly high (1.3143) as the pair continues to carve a near-term series of lower highs & lows.
- Signs of a stronger recovery may encourage the Bank of Canada (BoC) to endorse a wait-and-see approach at the next policy meeting on July 13, and we may see the central bank gradually move away from its easing cycle following the ‘insurance’ rate-cuts in 2015.
- USD/CAD may continue to give back the rebound from May, with a break/close below 1.2740 (50% expansion) raising the risk for a run at the monthly low (1.2653), which coincides with the Fibonacci overlap around 1.2620 (20% retracement) to 1.2650 (50% retracement).
