COZforex: The US dollar rise to session highs against the Canadian dollar on Tuesday after data showed that Canadian wholesale sales declined unexpectedly in March.

USD/CAD hit highs of 1.0906, the strongest since May 14 and was last up 0.25% to 1.0900. COZFX strategist Nigel Boynton said, USD/CAD is predicted to find support at 1.0855, and a drop through could take it to the next support line of 1.0834. Meanwhile, the pair is predicted to find its first resistance at 1.0889, and a rise through could take it to the next resistance line of 1.0902.

The loonie, as the Canadian dollar is also known, weakened after Statistics Canada reported that wholesale sales fell by 0.4% to C$50.5 billion in March. Market expectations had been for a 0.5% increase after a 1.1% gain in February.

The report said that the motor vehicle and parts subsector recorded the largest drop in March. Excluding this subsector, wholesale sales edged up 0.1% to C$42.3 billion.

Investors were looking ahead to Canadian data on retail sales and inflation later in the week.

Market participants were also looking ahead to the minutes from the Federal Reserve’s latest monetary policy meeting, due for release on Wednesday, as they awaited insight on the central bank's view of the economy.

Recent US economic reports indicating that the recovery remains uneven have weighed on US Treasury yields, pressuring the dollar.


(COZ forex UK)