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On Friday we saw a data release from Canada that received a bit of a mixed reaction.
Retail sales came in less than expected at -0.5% vs -0.3%, however CPI saw an uptick at 0.3% vs 0.2%.
The USDCAD initially had a bullish run off the news, but quickly sold off. As important as Retail sales is, all inflation related data at this point takes the forefront, as disinflation has been haunting economies globally.
The uptick, and rather hawkish monetary policy we received from CAD a few weeks back looks to be all too familiar. Recently we've seen the same scenario with another commodity currency, the Australian Dollar.
The similarity here being, both longer term weak currencies that are showing improvements.
So what does that mean for Canada's Currency? well, it's not just about data, the recent sell off in oil has been weighing down quite heavy on CAD crosses. However, if we start to see a short term bottom in oil, The CAD has really good potential to rally, especially against the weaker currencies.
Retail sales came in less than expected at -0.5% vs -0.3%, however CPI saw an uptick at 0.3% vs 0.2%.
The USDCAD initially had a bullish run off the news, but quickly sold off. As important as Retail sales is, all inflation related data at this point takes the forefront, as disinflation has been haunting economies globally.
The uptick, and rather hawkish monetary policy we received from CAD a few weeks back looks to be all too familiar. Recently we've seen the same scenario with another commodity currency, the Australian Dollar.
The similarity here being, both longer term weak currencies that are showing improvements.
So what does that mean for Canada's Currency? well, it's not just about data, the recent sell off in oil has been weighing down quite heavy on CAD crosses. However, if we start to see a short term bottom in oil, The CAD has really good potential to rally, especially against the weaker currencies.
