The USD/CAD pair remains flat around the 1.40 level, with traders closely monitoring potential developments from an upcoming US-Canada trade agreement and Canada’s pro-growth budget set for release next month, according to BBH FX analysts.
Limited Market Reaction Expected from Canada Retail Sales
USD/CAD is trading without a clear direction, supported technically at 1.3961—the 200-day moving average—and facing resistance at 1.4080, the high recorded on October 14. The release of Canada’s August retail sales data is not expected to significantly impact market volatility.
Statistics Canada’s preliminary figures showed a 1.0% month-on-month increase in retail sales for August, rebounding from a 0.8% decline in July. BBH analysts suggest that risks for USD/CAD are tilted to the downside due to the possibility of a US-Canada trade deal expected next week and the forthcoming pro-growth Canadian federal budget scheduled for November 4.
