It is natural that as soon as USD started to grow, CAD started to choke. After all, however strong Canadian national currency may be, USD is still much stronger. And the more it has the possibility to grow, the more it is going to press on its Canadian counterpart by dragging the chart higher and higher. But today the situation might change if even for a while.
Today CAD is going to see its Core Retail Sales m/m report. It Is going to tell us about state of retail sales in the country, namely automobile retail sales as automobiles are responsible for about 20 percent of all of the retail sales. And of course, the higher the number is, the better it is going to for CAD. The more it means that slipping prices for oil are not really affecting consumer confidence and the wish to spend.
But, in case the numbers are lower than we care for, USD is going to take even more advantage of the Canadian national currency and the chart is going to soar even higher. And that would be cool, although pretty damaging for Canada.
Will the chart fall or rise? Trading signals are going to tell us all.