Ella 
USD/CAD rose above the 1.3500 mark in early Asian trading on Wednesday. USD/CAD is currently trading around 1.3544, down 0.05% on the day. Market participants are watching Canadian retail sales data for June. Canada’s June retail sales are expected to be unchanged from the previous month.
Economic data on Tuesday showed that U.S. existing home sales came in slightly lower than expected in July at 4.07 million, compared with expectations for 4.15 million and from 4.16 million in the previous month. U.S. Existing Home Sales recorded -2.2% in July, compared to -3.3% in June. Meanwhile, the Richmond Fed manufacturing index fell to -7 from -9 in August, in line with market expectations.
Monetary policy will have to be tightened if inflation remains high and there are no signs of a decline in demand, Richmond Federal Reserve Bank President Thomas Barkin said on Tuesday. Upbeat U.S. data and hawkish comments from Fed officials boosted the dollar (USD). However, a speech by Fed Chairman Jerome Powell on Friday will serve as a guide for investors and may provide the central bank’s insight into the state of the economy.
In the Canadian dollar, the loonie was weakened by lower oil prices as Canada is the largest exporter of crude oil to the United States. The market expects the Bank of Canada (BOC) to maintain interest rate policy for a long time. At its July meeting, the Bank of Canada raised interest rates by 25 basis points to 5%.
Canadian retail sales for June and the US S&P Global Purchasing Managers Index are due on Wednesday. The annual Jackson Hole symposium will be held on Thursday and Fed Chairman Jerome Powell will speak on Friday. Market participants will take cues from these data and look for USD/CAD trading opportunities.
