Despite a seemingly good recovery course taken by the Canadian economy, the country's leading indices don't look so hot lately, casting a poll over CAD. And since Canadian and US economies are deeply connected with one another, weak US indices affect the Canada ones. Last Tuesday Canada Retail Sales Index was released showing 0.1% increase only (below analysts' predictions) while the Core RSI disappointed with 0.5% decrease. Following this numbers USD is gaining strength against CAD reaching CAD 1.0560. CAD downtrend began in early August at CAD 1.0100. Since then USD has been rising, following the global trend, and getting closer to CAD resistance at 1.0750.

CAD/JPY – 80.20

CAD is dropping sharply against JPY, which is getting stronger and getting historically high quotes against some currencies. The pair stands now at JPY 80.20, after falling to JPY 87.40 on Tuesday (following Canadian RSI release). Now CAD climbs back up a little after the Japanese government stated that it would interfere with the foreign exchange market to stop JPY rally in the world. If the current trend reverses, the next JPY resistance is at JPY 94.00.