Canada: Retail Sales decline by 3.4% in December vs. -2.5% expected

Retail Sales in Canada fell more than expected in December.
USD/CAD continues to push lower toward 1.2600 despite weak data.

Eren Sengezer FXStreet

Retail Sales in Canada fell by 3.4% in December to $53.4 billion and recorded the largest monthly fall since April, the data published by Statistics Canada showed on Friday. This reading followed November's increase of 1.3% and missed the market expectation for a decrease of 2.5%.

"Sales were down in 9 out of 11 subsectors, representing 83.6% of retail sales," the publication read. "Core retail sales—which exclude sales by gasoline stations and motor vehicle and parts dealers—also posted their slowest growth since April, falling 4.6% in December.

Market reaction

The CAD preserves its strength despite the disappointing data and the USD/CAD pair was last seen losing 0.57% on the day at 1.2608.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

Markets move fast. We move first.

Orange Juice Newsletter brings you expert driven insights - not headlines. Every day on your inbox.

Editor's Picks

EUR/USD drops to daily lows near 1.1630

EUR/USD now loses some traction and slips back to the area of daily lows around 1.1630 on the back of a mild bounce in the US Dollar. Fresh US data, including the September PCE inflation numbers and the latest read on December consumer sentiment, didn’t really move the needle, so the pair is still on course to finish the week with a respectable gain.

GBP/USD trims gains, recedes toward 1.3320

GBP/USD is struggling to keep its daily advance, coming under fresh pressure and retreating to the 1.3320 zone following a mild bullish attempt in the Greenback. Even though US consumer sentiment surprised to the upside, the US Dollar isn’t getting much love, as traders are far more interested in what the Fed will say next week.

Gold makes a U-turn, back to $4,200

Gold is now losing the grip and receding to the key $4,200 region per troy ounce following some signs of life in the Greenback and a marked bounce in US Treasury yields across the board. The positive outlook for the precious metal, however, remains underpinned by steady bets for extra easing by the Fed.