Canadian retail sales are forecasted to have fallen by 0.1% in April which would be the first decline in four months. Wholesale sales fell for a seventh month in April underlining a weakening of demand.
| June 19 | Canadian Retail Sales (APR)(MoM)(GMT 12:30: 08:30 EDT) |
|
|
| Expected: -0.1% |
|
|
| Previous: - 0.1% |
|
Fundamental Outlook
Canadian retail sales are forecasted to have fallen by 0.1% in April which would be the first decline in four months. Wholesale sales fell for a seventh month in April underlining a weakening of demand. Therefore we could see a significant reduction is consumption considering the shrinking inventories. A drop in domestic demand could weigh on the Canadian dollar which would conflict with the technical outlook for further USDCAD weakness. However, gasoline receipts in February fell 2.8% but since then we have seen oil prices rise which could lead to a reversal in the component and drag the headline reading into positive territory. Bullish data would validate the technical call for a possible test of 1.0780.
Technical Outlook
It is possible that the USDCAD decline from 1.3068 is complete but there remains a competing alternate in which the pair will drop to a new low (below 1.0780) before resuming the larger rally. The 61.8% of the advance from .9055 is at 1.0417 and is potential support. Potential short term support is at 1.1200.
For More Technical Analysis Visit the Daily Technical Report
To discuss this report contact John Rivera, Currency Analyst: [email protected]
The information contained herein is derived from sources we believe to be reliable, but of which we have not independently verified. Forex Capital Markets, L.L.C.® assumes no responsibility for errors, inaccuracies or omissions in these materials, nor shall it be liable for damages arising out of any person’s reliance upon this information. Forex Capital Markets, L.L.C.® does not warrant the accuracy or c
