CAD Falling to 6-Week-Lows from Retail Sales

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Retail sales in Canada fell 0.8% today. Deviating strongly from the ForexFactory forecast of +0.1%, -0.8% could continue to manifest in Canadian weakness throughout the day, maybe into the market close tomorrow. This is a possibility, especially in light of the fact that jobless claims for the U.S. fell to a 5-year low average 330,500 today.

July’s retail sales report for Canada was an impressive 1.2% increase. Since that time though, Canada has seen unexpected declines in manufacturing and wholesale sales and an unexpected job loss. Canada’s CPI report will be released tomorrow. Their GDP will be released next week.

Some recent reports believe that the retail sale decline is partially caused by the recent floods in Alberta and a June construction labour strike in Quebec. Events led analysts to forecast a decline in retail sales for the month.

Though the CAD is at 6-week-lows against the USD, it is confronting a serious 1.050 resistance.

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