Canadian retail sales overview
Statistics Canada will publish the monthly retail sales report for December later this Friday at 13:30 GMT, with consensus estimates pointing to modest growth for the second consecutive month. The headline sales are expected to post a growth of 0.1% as compared to the previous month's solid rise of 0.9%. Meanwhile, sales excluding automobiles are anticipated to rise by 0.4% as against a modest 0.2% increase recorded in November.
How could it affect USD/CAD?
Ahead of the key release, the pair was seen oscillating in a range just above mid-1.3200s and struggled to capitalize on the previous session's goodish bounce from three-week lows. A surprisingly stronger reading might be enough to prompt some fresh selling and accelerate the slide back towards the very important 200-day SMA support near the 1.3220-15 region. Some follow-through selling should now pave the way for an extension of the recent corrective slide from four-month tops and has the potential to drag the pair further below the 1.3200 round figure mark towards testing its next major support near the 1.3155-50 horizontal zone.
Conversely, a weaker reading should assist the pair to build on the overnight positive move and make a fresh attempt towards reclaiming the 1.3300 round-figure mark. The momentum could further get extended towards the recent swing highs, around the 1.3330 region, above which the pair seems all set to resume its bearish trajectory witnessed since early January.
About Canadian retail sales
The Retail Sales released by Statistics Canada is a monthly data that shows all goods sold by retailers based on a sampling of retail stores of different types and sizes. The retail sales index is often taken as an indicator of consumer confidence. It shows the performance of the retail sector in the short term. Generally speaking, the positive economic growth anticipates bullish movements for the CAD.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.