USD/CAD continues to drift at the start of the trading week. In the North American session, the pair is trading at 1.3312, up 0.08% on the day. In economic news, wholesale sales rebounded with a strong gain of 1.0% in September, after declining 1.2% in the previous release.
Loonie Quiet After Mixed Retail Sales Data
Canadian consumers have not been in the best of moods, as recent retail sales reports have been weak. On Friday, the September retail sales were a mixed bag. Retail sales posted a second straight decline of 0.1%, but managed to beat the estimate of -0.3%. There was better news from core retail sales, as the gain of 0.2% put an end to back-to-back declines. The response of the Canadian dollar was muted.
The round number of 1.3300 remains relevant. Currently, it is a weak support level. The next support level is at 1.3170, which has held since early November. Note that the 200-EMA and 50-EMA follow closely. The 200-EMA is at 1.3232 and the 50-EMA immediately follows at 1.3215. Below, we find support at 1.3175.
On the upside, the round number of 1.33 remains vulnerable. Above, there is resistance at 1.3370.
EUR/GBP has started the week with losses. In the North American session, the pair is trading at 0.8544, down 0.39% on the day. On the fundamental front, German Ifo Business Climate improved to 95.0, edging above the forecast of 94.9 pts. This marked a 4-month high, but the pair has still lost ground on Monday.
EUR/GBP pair continues to flirt with the line of 0.8560. The pair tested this support line in the European session. Below, there is support at the round number of 0.8500. On the upside, there is weak resistance at 0.8596. Above, there is resistance at 0.8700, which has held since mid-October.
This article was originally posted on FX Empire
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