FXstreet.com (Barcelona) - USD/CAD has fallen around 100 pips after the Canadian retails sales data, from 1.2412 to 1.2316.
Since the beginning of the European session, USD/CAD has been traded between the 1.2400/1.2300 range. Currently, USD/CAD is trading around 1.2360/80. Next support would be 1.2300, below there, 1.2222 and 1.2200. On the upside, 1.2400 will be resistance. Above there, 1.2432 and 1.2480.
Retail sales has posted a monthly increase of 1.9% in January against the 5.4% decreases posted in December. Excluding autos, Canadian retail sales has risen 1.3% in January, better than 3.2% falls posted in December. New Car sales has jumped up 5.5% in January from the 14.8% decreases published in December.
According to Tatsuya Kawanishi, Junior Adviser at FXstreet.com, Commodity pair will rise against USD: The situation has become in a state of uncertainty where investors look for resource values.The commodity prices soared. Oil prices went back above 50 USD level since January, gold price got the highest gain since last September as FOMC announced that it would buy 300 billion dlr of gov debit.Thus, those increasing commodity prices suggest inflationary pressure in the near term.