USD/CAD Pair Moving Higher Amid Strengthening US Dollar

USD to CAD exchange rate surged strongly in the last week following strong economic indicators for the North American economy, while the Canadian dollar continues to fall against the basket of other currencies on the back of falling crude oil prices and declining economic numbers.

Though, the Canadian dollar conversion rate to USD appreciated on Thursday, following lower than expected U.S. retail sales. US core sales remained negative at 0.1 percent, when analysts were expecting positive growth of 0.3 percent. Meanwhile, retail sales declined even higher than the expectations of -0.1% to -0.3 percent.

Despite retail sales report, some other positive indicators allowed a huge rally in the USD/CAD exchange rate. USD to CAD currency conversion rate keeps on looking bullish and is drawing closer a key resistance level at 1.3241.

Strong US inflation data has also provided a support to USD to CAD currency rate. Based on US inflation data, US consumer price index surged 0.2% in the last month, beating analyst’s expectations for the rise of 0.1%. Core CPI increased 0.3% compared to the expectations of 0.2%, the largest monthly boost since February.

There is going to be some key U.S. data release in the next week, which could either push the USD exchange against the Canadian Loonie exchange rate up past this resistance and after that give an unmistakable run as far as possible up to the following level route above at 1.3400.

Crude oil prices are very important for CAD exchange rate, as the country is among major crude oil producers. Over the last couple of weeks, crude oil prices declined significantly, amid traders concerns over rising global production and declining demand. EIA and OPEC, both have predicted higher than expected crude oil supplies in the next two quarter, which could create a negative pressure on the Loonie currency rate.