USDCAD: Break above 1.3313 is expected to add to bullish sentiment – RBC CM

Elsa Lignos, Senior Currency Strategist at RBC Capital Markets, notes that the USD/CAD reached a new 7m high above 1.3350 on Friday and the weak retail sales report merits particular attention as the BoC is looking to consumer spending as the primary engine of growth in 2016 and 2017.

Key Quotes

“There are no first-tier data releases in Canada this week; wholesale trade sales are due today and the CFIB Business Barometer on Thursday. Poloz and Wilkins appear in front of Parliament today for their semi-annual testimony though the message is likely to be very similar to last week’s MPR. Friday’s break above 1.3313 is expected to add to bullish sentiment for USD/CAD from a technical perspective, with 1.3402 and 1.3446 serving as the next resistance levels of note. Support is located at 1.3161 and 1.3048.”