Canadian retail sales fall in May - CAD gets hit
In the absence of other key data today, there was an increased focus on the Canadian retail sales number this afternoon. Spending in May fell by 0.1% vs expectations of a 0.3% rise, and when looking at core sales, the 0.3% fall is an even larger deviation from 0.3% expected here also.
Having seen USD/CAD dipping into 1.3000 and finding support each time, it was clear that there was good support in this area, with strong USD selling last night also unable to clear this level. Basing out around the 1.3050 mark ahead of the release, we are now pushing 1.3100+ levels, and from here we watch the 1.3135-50 zone.
Looking beyond here, the USD focus may start to become more evident should we push into the mid 1.3200's, though we expect this could be a tough ask going into the weekend. In any case, we need to clear 1.3150 first!