Canadian Dollar shrugs off mixed retail sales data, but follows oil prices higher. Headline retail sales dropped -0.1% mom in December versus expectation of -0.3% mom. Ex-auto sales dropped -0.5% mom versus expectation of -0.3% mom.
WTI Crude oil’s rally resumes today and hits as high as 57.85 so far. Rise fro 42.05 is in progress and should target 61.8% projection of 42.05 to 55.85 from 51.49 at 60.01. For now, we’d continue to expect strong resistance around 60, which is close to 50% retracement of 77.06 to 42.05 at 59.55. 55 week EMA (now at 59.48). Upside should be capped there to bring near term reversal.
