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Forex: EUR/CAD awaits NY opening at 1.3350 after 100-pip fall on Europe

FXstreet.com (Barcelona) - The EUR/CAD may have a ride today as the Canada retail sales comes out at 12:30 GMT and BoC Governor Carney will make a speech. Also, the US economic calendar has plenty to affect the Loonie, with US Markit manufacturing PMI, Richmond Fed manufacturing, retail sales and Redbook Index. For now, the cross is down by -0.37%, held by the 1.3330/40 area after falling 100 pips on the European opening as Markit reported concerning PMI figures for Germany and investors are concerned with the disappointing China HSBC manufacturing PMI posted at 50.5 instead of the 51.5 consensus.

“Both the manufacturing and service PMIs for Germany were worse than expected with manufacturing falling to 47.9 (49.0E, 49.0P) and services falling from 50.9 to 49.2 (51.0E). New orders and new export orders were soft and generally the worst they have been this year but, unlike France, employment increased in the service sector and was close to flat in manufacturing”, wrote TD Securities analyst Tim Davis, adding that cost pressures are reported to continue to trend lower just like in France. “So there is enough here to help the ECB feel like inflationary pressures are developing as soft as they expected (and in fact are likely to be revised lower in June if commodity pullback persists)”, Davis concluded.

TD Securities analyst Annette Beacher had an input about Canada retail sales: “We expect an above-consensus +0.5% lift in Feb headline retail sales, and core to rise by +0.7%, with risks still skewed to the upside due to strong gasoline sales. The value of auto and core sales should also be strong, but after stripping out price effects volumes are expected to fall, and exert a modest drag on industry level GDP”.

Mataf.net analysts point to resistance at 1.3410, 1.3450 and 1.3525. On the downside, supports might be found at 1.3310.

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