CAD strongest since June

Today's data from the Canadian economy turned out worse than expected. Canadian retail sales increased by 18.7% MoM for May, although an increase of 20% MoM was expected. However, this is quite a rebound given the previous report which showed sales fell by more than 25% in April. In annual terms, sales in May were still lower than a year ago and by as much as 18.4% y / y.

Nevertheless, USDCAD is driven by completely different factors at this point. First, we are seeing very positive sentiment in the markets. Second, crude oil rises to 4-month highs. WTI is trading around  $43 per barrel. This caused that the USDCAD broke below the support at 1.3500. Another important support is located at 1.3320 -  local lows from June. Theoretically, this would require an oil price of $ 45 per barrel.

USDCAD continues to decline as oil prices rise. Source: xStation5

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