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USDCAD back near 1.32 after mixed retail sales

15:01 22 February 2019

Summary:

  • Canadian retail sales Y/Y: +1.7%. Core Y/Y: +1.6%
  • Loonie remains slightly higher on the day
  • USDCAD searching for direction back near $1.32

The latest look at consumer spending in Canada has revealed some mixed messages with the latest retail sales figures topping estimates but the core numbers disappointed. Specifically, the headline retail sales Y/Y was +1.7% while the ex-autos (core) came in at 1.6% over the same time horizon. Both of these metrics have recovered from their recent lows when they were pretty much flat but compared to the rest of this decade they remain at depressed levels. M/M readings are more erratic but can give a better indication of short-term changes, and on this front the headline declined by 0.1% vs -0.3% expected with the previous reading still -0.9%. The core reading of -0.5% was below the 0.3% expected, while the prior was revised down by 0.1% to -0.7%.

Retail sales may have bounced back in Y/Y terms, but they remain relatively weak compared to the past decade. Source: XTB Macrobond

 

Overall the data could be seen as slightly soft for the Canadian dollar, with the core reading often being viewed more keenly that the headline, but all in all it’s not really game changing in itself. Looking back across the week, it’s been a pretty steady one for the Loonie, with the currency sitting towards the middle of its range and the only real significant moves, such as those in the pound and Kiwi coming due to the other side of the pair.

The Canadian dollar has had a fairly uneventful week and trades pretty flat on the whole, with the only moves of note coming against the GBP and NZD and these were both due to the other side of the pair. Source: xStation

USDCAD remains below the cloud with a confirmed break with all lines supporting the move. The highs around the cloud at 1.3375 could be seen as important resistance while 1.3180 and 1.3070 are levels to keep an eye on below. Source: xStation

This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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