Tuesday, November 21, 2006

Forex News: Canadian Fell on Weak Retail Sales

Forex News

The Canadian dollars weakened further today after the release of two weak Canada economic indicators. Canada retail sales surprisingly dropped 1.2% in September, well below the forecast of -0.4% and the previous month's reading of 1.0%. Excluding food and energy sales, core retail sales unexpectedly fell 0.9%, disappointing the market that expected a rise of 0.1%. Canada leading indicators rose 0.2% in October, below the expectation of a 0.4% increase. The Canadian dollar lost its edge since the beginning of this month as Canada announced that it planned to tax income trusts.

USDCAD will face resistance at 1.1480, followed by 1.15 and 1.1530. Additional ceilings will emerge at 1.1550, backed by 1.1580 and 1.16. Support starts at 1.1450, backed by 1.1425, 1.14 and 1.1370. Subsequent floors are eyed at 1.1350, backed by 1.1320.


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