US dollar slipped lower against the Canadian peer for the first time in three days on Monday before the official retail sales report out of Canada, scheduled for release on Tuesday.
USD/CAD reached a session low at 1.0276 at 13:10 GMT, after which consolidation followed at 1.0283, down by 0.23% for the day. Support was likely to be received at September 20th low, 1.0261, while resistance was to be met at September 20th high, 1.0309.
Canadian retail sales probably rose 0.6% in July after declining 0.6% during the previous month, according to a survey of 18 economists by Bloomberg News. “We’re probably looking for Canada to make a little bit more gains from here, and then lose a little bit of steam,” Don Mikolich, executive director of foreign exchange sales at Canadian Imperial bank of Commerce, said by phone from Toronto, cited by the same media. “I don’t know if Canada is due to overly strengthen in a period where we’re still in recovery mode.”
Meanwhile, in the United States, the preliminary value of the manufacturing PMI, evaluated by Markit, slowed down to 52.8 in September from a reading of 53.1 in August, while experts had anticipated an advance to 54.0. Values above the key level of 50.0 usually indicate that activity in the sector has expanded.
The greenback found support after Bank of St. Louis President James Bullard said on Friday, that Fed’s decision not to taper in September was “close” and also gave indications of a possible small reduction in asset purchases in October.
Elsewhere, the loonie, as Canadian dollar is also known, was gaining against the euro, as EUR/CAD cross fell 0.37% to trade at 1.3881 at 14:28 GMT. GBP/CAD pair was slightly lower today, dipping a mere 0.05% to trade at 1.6493 at 14:29 GMT.
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