Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Canadian Dollar Calm Ahead Of Retail Sales

By MarketPulse (Kenny Fisher)ForexJan 21, 2022 06:55AM ET
www.investing.com/analysis/canadian-dollar-calm-ahead-of-retail-sales-200615491
Canadian Dollar Calm Ahead Of Retail Sales
By MarketPulse (Kenny Fisher)   |  Jan 21, 2022 06:55AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

The Canadian dollar continues to tread in choppy waters, as it trades slightly above the symbolic 1.25 line.

The week will wrap up with Canada releasing retail sales, the primary gauge of consumer spending. For November, the headline reading is expected to slow to 1.2% y/y (1.6% prior) and core retail sales are forecast to remain unchanged at 1.2%.

Canadian provinces have renewed tough health restrictions in a bid to curb the spread of Omicron, which is dampening restaurant and entertainment activity. GDP growth will be affected by the restrictions, and expectations are that Canada will show marginal or no growth in the first quarter. The good news (hopefully) is that pent-up demand will translate into strong growth once the Omicron wave subsides.

Despite the toll that Omicron has inflicted on the Canadian economy, the markets are expecting the Bank of Canada to act at next week’s policy meeting. A quarter-point hike has been priced in at around 70%, even though at its meeting, the BoC is expected to revise lower its growth forecast for Q1.

Canadian inflation hits 30-year high

Financial headlines announcing that inflation has surged to 30-year highs are becoming more common. First, it was US inflation, followed by the UK just this week, and now Canada has joined the club. In December, headline CPI rose to 4.8% y/y, the highest level since a 5.5% print back in September 1991.

The jump in inflation has raised expectations that the BoC will press the rate trigger at next week’s meeting. Inflation has now overshot the bank’s inflation target of 1% to 3% for nine straight months. Higher oil prices are also contributing to inflation, but we could see some relief as oil futures indicate that oil prices will ease in the first half of this year.

GBP/USD Daily Chart
GBP/USD Daily Chart

USD/CAD Technical

  • There is support at 1.2434, which has held since mid-November. Below, there is support at 1.2322
  • There is resistance at 1.2678 and 1.2810

Original Post

Canadian Dollar Calm Ahead Of Retail Sales
 

Related Articles

Kenny Fisher
Is The Yen Making A Comeback? By Kenny Fisher - May 20, 2022 1

After a brutal slide over the past two months, the Japanese yen is showing some bounce in its step.Japanese yen bounces backThe yen registered 10 straight losing weeks but finally...

Canadian Dollar Calm Ahead Of Retail Sales

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email