USDCAD, M30 and H1
USDCAD has upwardly popped on the CPI miss out of Canada, which saw the y/y rate undershoot expectations at 2.2% y/y. The median forecast had been for a 2.3% y/y outcome. The markets looks to have overlooked the 0.6% gain in March retail sales, although double the median forecast. USDCAD has climbed above 1.2879, up over 82 pips from pre-data levels.
Canada CPI slowed to a 2.2% y/y pace in April from the 2.3% y/y pace in March. CPI rose 0.3% m/m in April after the 0.3% gain in March. The slowing in the annual growth rate is contrary to expectations (median +2.3% y/y with a 0.4% m/m gain). The core measures held near the BoC’s 2.0% target
Canada retail sales rose 0.6% in March after a revised 0.5% increase in February sales values (was +0.4%). The ex-autos sales aggregate fell 0.2% in March following the flat (0.0%) reading in February. A 3.0% gain in motor vehicle and parts dealers followed a 2.0% gain in February, driving total sales during March. Yet a 1.2% drop in food and beverage store sales, along with a 1.9% pull-back in gasoline station values (despite, or perhaps because of higher gasoline prices) pulled the ex-autos sales aggregate underwater in March.The increase in total sales overshot expectations, but the ex-autos sales aggregate was contrary to expectations for a gain. Total sales volumes grew 0.8% m/m in March, supportive of further improvement in March GDP (we’ve penciled in a +0.2% gain) after the 0.4% rebound in February and 0.1% drop in January.
There's more! Access all our latest analyses and other great content by subscribing to the HotForex Youtube channel. You can also talk to our experts live by registering for one of our free webinars!
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
EUR/USD clings to daily gains above 1.0650
EUR/USD gained traction and turned positive on the day above 1.0650. The improvement seen in risk mood following the earlier flight to safety weighs on the US Dollar ahead of the weekend and helps the pair push higher.
GBP/USD recovers toward 1.2450 after UK Retail Sales data
GBP/USD reversed its direction and advanced to the 1.2450 area after touching a fresh multi-month low below 1.2400 in the Asian session. The positive shift seen in risk mood on easing fears over a deepening Iran-Israel conflict supports the pair.
Gold holds steady at around $2,380 following earlier spike
Gold stabilized near $2,380 after spiking above $2,400 with the immediate reaction to reports of Israel striking Iran. Meanwhile, the pullback seen in the US Treasury bond yields helps XAU/USD hold its ground.
Bitcoin Weekly Forecast: BTC post-halving rally could be partially priced in Premium
Bitcoin price shows no signs of directional bias while it holds above $60,000. The fourth BTC halving is partially priced in, according to Deutsche Bank’s research.
Week ahead – US GDP and BoJ decision on top of next week’s agenda
US GDP, core PCE and PMIs the next tests for the Dollar. Investors await BoJ for guidance about next rate hike. EU and UK PMIs, as well as Australian CPIs also on tap.