When are Canadian Retail Sales and how could affect USD/CAD

Statistics Canada will publish its results from Canadian Retail Sales for the month of December at 1330h GMT. Market consensus sees headline sales to come in flat on a monthly basis, while sales stripping the Autos sector are seen gaining 0.6% inter-month.

About Retail Sales

The Retail Sales ex Auto released by the 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 except the automobile sector. 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”.

Impact on FX

USD/CAD keeps the bullish note intact so far this week, extending the recent breakout of the key 1.3100 hurdle and always propped up by USD-dynamics via US-CA divergence in monetary policy.

A positive reading today could add some support to CAD, although the effect should quickly dilute in light of the more relevant calendar in the US docket. Interim resistance appears at 1.3215 (high Feb.7) while the 20-day sma – currently just below the 1.3100 handle – should offer initial support.