Headline Retail Sales in Canada rose by 0.1% MoM in March, according to the latest figures released by Statistic Canada on Friday, above expectations for a 0.4% MoM decline. March's 0.1% growth rate marked a substantial slowdown from February's strong 3.3% MoM growth rate, which was revised a tad higher from 3.2%. 

The headline beat was driven by a large beat on expectations in Core Retail Sales growth in March. Core Retail Sales grew 2.1% MoM versus expectations for a much more modest growth rate of 0.1%, marking only a modest decline from February's 2.9% growth rate. 

Market Reaction

USD/CAD saw some modest kneejerk weakness in wake of the latest robust Canadian retail sales numbers, pulling back a few pips from session highs in the 1.2680s, but the pair continues to trade with significant on-the-day gains and near one-month highs given risk-off flows and a strong US dollar.