Canadian Dollar snaps five-day win streak despite firm Retail Sales beat

• Canadian Dollar sheds a fifth of a percent against Greenback.
• Canada saw an upswing in core Retail Sales, but industrial prices cooled.
• US PMIs beat the street, snubbing forecasts and ticking higher in June.

The Canadian Dollar (CAD) is struggling to overtake the US Dollar (USD) on Friday, buckling under the weight of a thin, five-day win streak against the Greenback after the US Purchasing Managers Index (PMI) firmly beat forecasts, bolstering the Greenback and leaving the CAD to compete for second place.

Canada saw a better-than-expected print in core Retail Sales in April, but floundering industrial and raw materials prices in May limited the Canadian Dollar's upside moves on Friday. US PMIs lurched higher in June, pushing the US Dollar higher across the board. The CAD is still broadly higher on the week, holding onto a fifth of a percent against the USD from Monday's opening bids.

Daily digest market movers: Mixed Canadian data flubs broad beats from US

• Canadian core Retail Sales surged 1.8% MoM in April, the highest MoM gain since July 2022. Markets had expected a print of 0.7% compared to the previous month's revised -0.8%.
• Canadian Raw Material Price Index fell a full 1.0% in May, a steeper decline than the expected -0.6% contraction and falling back from the previous 5.3% (revised from 5.5%).
• Canadian Industrial Produce Prices came in flat in May, below the 0.5% forecast and clipping the previous month's revised 1.4% as inflation continues to seep out of the Canadian economy at the industrial level.
• US S&P Global Manufacturing PMIs broadly beat forecasts with the Manufacturing PMI printing at 51.7 versus the forecast decline to 51.0 from the previous 51.3.
• US Services PMI also stepped higher, clipping into 55.1 compared to the median market forecast of 53.7 against the previous month's 54.8.
• Coming up next week, Bank of Canada (BoC) Governor Tiff Macklem will be making a public appearance on Monday; Tuesday will follow up with Canada's Consumer Price Index (CPI) inflation alongside the BoC's own CPI core print.

Technical analysis: Canadian Dollar gives mixed performance on Friday

The Canadian Dollar (USD) is trading tightly on Friday with gains and losses equally balanced. The CAD is up around a fifth of a percent against the Australian Dollar (AUD) and Japanese Yen (JPY), but struggling to limit losses against the US Dollar to one-fifth of one percent.

USD/CAD bumped higher on Friday, bouncing from a fresh weekly low of 1.3675 to briefly test back above the 1.3700 handle before running into intraday technical resistance at the 200-hour Exponential Moving Average (EMA) at 1.3715.

Daily candlesticks are on pace to chalk in a first green candle after soft declines for five straight trading days, rebounding from near-term support at the 50-day EMA near 1.3675. USD/CAD is mired in rough consolidation as traders grapple with a rough rising trendline, and long-term technical support continues to bolster bids as the 200-day EMA rises into 1.3600.

USD/CAD hourly chart

USD/CAD daily chart