CAD Retail Sales preview: what to expect of USD/CAD

Canadian Retail Sales are due later in the NA session. Market consensus sees headline sales to have expanded 0.6% inter-month in April and Core sales to rise 0.9%, both prints reverting previous drops of 0.3% and 1.0%, respectively.

Strategists at TD Securities have justified the better prospects for today’s prints: “Industry reports, noting another strong month for auto sales, are expected to help this sector rebound from the anomalous decline noted in the March report… A similar rebound dynamic is expected for the home furnishings component given the continued momentum in existing home sales. A sizable jump in the price at the pump will also provide a lift to sales at gasoline stations”.

Regarding USD/CAD, the significance and imminence of the UK Referendum would surely offset the results, whatever they turn up to be. However, there are no relevant hurdles on the upside until recent peaks near the 1.3100 handle (June 16), while the mid-1.2600s emerges as quite decent a support in case the current leg lower gathers pace.