Canadian monthly retail sales overview
Friday’s economic docket highlights the release of Canadian monthly retail sales figures for October, scheduled later during the early North American session at 13:30 GMT. The headline sales are anticipated to show a modest 0.2% growth during the reported month, down from 1.1% recorded in September. Sales excluding autos are also projected to show a 0.2% MoM rise in October as compared to the previous month’s 1% increase.
How could it affect USD/CAD?
The data is unlikely to be a major game-changer for the USD/CAD, though might still be looked upon for some short-term trading impetus. A strong reading could provide a modest lift to the Canadian dollar and exert some pressure on the major. The downside, however, is likely to remain limited amid some short-covering move witnessed around the USD.
That said, prospects for additional US fiscal stimulus might keep a lid on the attempted USD recovery and cap any meaningful upside for the pair. Hence, any knee-jerk reaction to worse-than-anticipated figures might turn out to be short-lived and the uptick might still be seen as a selling opportunity.
Key Notes
• USD/CAD bounces back to resistance at 1.2750/70
• USD/CAD analysis: Bears could prevail
• USD/CAD: Next stop at 1.2620 after a near-term consolidation – Credit Suisse
About Canadian retail sales
The Retail Sales released by Statistics Canada is a monthly data that shows all goods sold by retailers based on a sampling of retail stores of different types and sizes. The retail sales index is often taken as an indicator of consumer confidence. It shows the performance of the retail sector in the short term. Generally speaking, the positive economic growth anticipates bullish movements for the CAD.
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