USD/CAD Calm on Forecast for Mfg Sales 

The Canadian dollar has gained 1.1% in forex trading this week. However, it had a very calm Friday session.

USD/CAD is currently trading at 1.3235, up 0.07% while some movement in the North American session is seen. There were releases on both sides of the border.

Canada released manufacturing sales, while the US published retail sales, a key gauge of consumer spending.

Bright Forecast for Manufacturing Sales

June data for Manufacturing Sales will be released later on Friday. The manufacturing sector was hammered by Covid-19 in Q2. And this was reflected in manufacturing sales plummeting by 28.5% in April.

However, the indicator bounced back in May where it posted a gain of 10.7%. Moreover, analysts are projecting an even stronger gain of 16.4% in June. The Canadian dollar could get a boost if the actual read is close to this estimate.

US Retail Sales Expected to Slow Down

As this indicator is often a market-mover, all eyes will be on US retail sales. Consumer spending was strong in June, as the headline figure gained 7.5%. Moreover, the core reading climbed 7.3%.

July is expected to post only modest gains. That is with a forecast of 2.0% for the headline read and 1.3% for the core release.

Still, if the actual readings are within expectations, the greenback can be expected to hold its own. However, USD/CAD could lose ground if the readings are softer than expected.

USD/CAD moved slightly higher in the Asian forex session but then lost these gains. The pair posted considerable losses in European trade. It has however steadied in North American trade.

In FX news, the next resistance line is 1.3321, followed by resistance at 1.3393. USD/CAD has tested 1.3204 in support, while the next support line is 1.3159. The 10-day MA line remains relevant at 1.3227.