When are the Canadian retail sales figures and how could they affect USD/CAD?

Canadian retail sales overview

Statistics Canada will publish the monthly retail sales report for April later this Friday at 12:30 GMT. Consensus estimates point to a steep decline for the second consecutive month and the headline sales are expected to have plunged 15.1% in May. Meanwhile, sales excluding automobiles are also anticipated to have dropped by 13.5% during the reported month.

How could it affect USD/CAD?

Ahead of the key release, the USD/CAD pair was trading with modest losses below the 1.3600 round-figure mark amid the ongoing bullish run in oil prices to over three-month tops. Meanwhile, any positive surprise might be enough to provide an additional boost to the commodity-linked currency – the loonie – and drag the pair further towards the 1.3540-35 horizontal zone. The downward trajectory could get extended further, though bears are likely to wait for a sustained break below the key 1.3500 psychological mark before positioning for an extension of the recent downward trajectory.

Conversely, a weaker reading might provide a minor lift to the pair towards the 1.3635-40 supply zone. Some follow-through buying now seems to assist the pair to aim to reclaim the 1.3700 round-figure mark.

Key Notes

• USD/CAD Price Analysis: 1.3615 is the level to beat for the bulls
• USD/CAD holds weaker below 1.3600 mark amid rallying oil prices

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.