Fall of -2.0% much worse than expectations of -0.4%
The USDCAD has risen sharply on the weaker than expected retail sales in Canada. The headline number came in at -2.0% vs. -0.4% expectations. Ex-autos, I was also weaker -2.3% vs. -0.8% estimate. Lower gift purchases and gas being blamed. The Bank of Canada cut rates on January 21 in a surprise move to spur on additional growth. Perhaps they had a inkling of this weak number.
The USDCAD surged back above the 200 hour MA and the 38.2% at the 1.24892 area and is testing the 50%. Any correction toward the 200 hour MA area should find buyers with risk on a move below that support area.
