USD/CAD Continues Higher Undisturbed After Canadian Retail Sales
Inflation has increased in Canada as well, although it’s nowhere near the US, where CPI (consumer price index) is heading to 7%. The FED has turned hawkish now and in the last meeting, we heard comments that they might want to pick up the pace of monetary tightening.
That has turned the USD quite bullish and yesterday the August high was broken. The trend has been bullish since the price reversed at 1.20 and today’s after the jump in retail sales in Canada there was no reaction, which means that buyers remain in control. This pair should break 1.30 before the end of 2021, so those who bought USD/CAD above 1.20 should hold on, with more gains on the table. Below is the retail sales report from Canada for October.
Canadian October and Advance November 2021 Retail Sales
- October retail sales +1.6% vs +1.0% expected
- September sales were -0.6%
- Core sales ex. autos +1.3% vs +1.5% expected
- Prior ex. autos -0.2%
- Ex autos and gas +1.5%
- November advance flash estimate +1.2%
- October sales up in 7 of 11 subsectors
- New auto sales +2.8% after two months of declines
- Building material and garden equipment +3.2%
- Sporting goods, hobby, book, and music stores +17.5% as sports resumed in the fall
- E-commerce -0.9% m/m and +4.2% y/y
These numbers point to a healthy holiday season but I suspect shopping was pulled earlier this year so we’ll see some payback in December. USD/CAD has been little changed since the release.
Eurozone December Flash Consumer Confidence
- Dec flash consumer confidence -8.3 vs -8.0 expected
- Prior was -6.8
This is an early look at how consumers are reacting to omicron.
USD/CAD Live Chart
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