CAD to USD Rate Stays In the Channel After Canada Retail Sales
The rate of CAD to USD continues to bounce around, with USD/CAD trading inside a bullish channel since the beginning of 2024. Both the FED and Bank of Canada are preparing to embark on a monetary policy easing process which is keeping the situation uncertain for both currencies, however, the USD has the upper hand, as the highs keep getting higher, while moving averages are supporting the lows in USD/CAD.
USD/CAD Daily Chart – MAs Are Keeping It Supported
USD/CAD has been trading within a fluctuating range for several weeks, moving between higher and lower prices. The market action is confined within a channel that is slightly tilted to the upside. However, due to the significant volatility with frequent ups and downs, neither buyers nor sellers are able to establish a prolonged dominance in the market.
Weaker Canada Inflation CPI in February
The closely monitored Consumer Price Index (CPI) by the Bank of Canada (BoC) showed on Tuesday that inflation is falling faster than expected in Canada. The CPI report was anticipated to show a jump to 3.1%, indicating an increase from the previous month’s reading of 2.9%. Additionally, the MoM CPI was expected to show a 0.6% jump in February, following a flat reading of 0.0% in January.
But, the February Consumer Price Index (CPI) year-over-year (YoY) figure came in at 2.8%, which is lower than the projected 3.1% and below January’s CPI of 2.9% year-on-year. Additionally, the CPI month-over-month (MoM) reading for February was also lower than expected, with an increase of +0.3% compared to the projected +0.6%. These figures indicate that inflationary pressures were weaker than anticipated in February, as both the YoY and MoM CPI readings fell short of expectations. Today’s retail sales
Canada January Retail Sales
- January retail sales -0.3% vs -0.4% expected
- February retail sales +1.4%
- The January advance estimate was -0.6%
- Sales Ex autos +0.5% vs -0.4% expected
- Prior month ex auto +0.6%
- Ex auto and gas +0.4%
- Sales were up in 6 of 9 subsectors
- Advance February retail sales +0.1%
- Full report
USD/CAD Live Chart
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