The Canadian dollar continues recovering, and this time it got a boost from a stronger than expected rise in manufacturing sales for January, despite a downwards revision for December. Â Sales advanced by 1.5%, better than 0.6% expected. However, this came on top of a bigger drop of 1.5% in December, worse than 0.9% originally reported.
USD/CAD dropped to a low of 1.1024 from around 1.1040 beforehand. This is the second day of advances for the loonie, that sees a squeezing trading range. — updates coming —
At the same time, the US also released some data: annual headline inflation dropped more than expected while building permits came out better than expected.
Here is the daily chart showing the squeezing trading range:
The round number of 1.10 works as support. 1050 serves as minor resistance. For more, see the USDCAD forecast.
