CAD Retail Sales in Focus
Canadian Retail sales are on deck today and on the back of the recent BOC meeting, the release is likely to create some volatility in CAD if we see any significant surprise. The BOC held off from any further monetary policy adjustments at it last meeting, following the tapering announced over the prior month. However, looking ahead, the bank gave a firmly hawkish signal, citing the improving fundamentals (both domestic and global) and as such, traders will be keeping a close eye on all incoming data. Given the importance of retail sales in calculating GDP, a strong beat today will likely fuel a spike higher in CAD while any weakness will likely see CAD lower.
Where to Trade CAD Retail Sales?
The reversal in USD sentiment over the last 24 hours has seen USDCAD pulling back from recent highs. If today’s data is strong, USADCAD is likely to pull back lower. A break below the 1.2243 level will open the way for a move down towards the 1.2068 level. On the other hand, should price break back above the bearish channel, 1.2469 will be the key upside marker to break.