Firm Canadian Retail Sales may give the CAD a modest lift – Scotiabank

Market news

21 July 2023

Firm Canadian Retail Sales may give the CAD a modest lift – Scotiabank

The CAD is little changed in the session. Economists at Scotiabank analyze Loonie's outlook ahead of Retail Sales.

Downside momentum may need a “refresh” from a break under 1.3070

Canadian Retail Sales are expected to rise 0.5% in May (0.2% for ex-auto sales). A 0.5% gain is in line with the flash estimate released alongside the strong April report last month. Firm data may give the CAD a modest lift on the session.

Intraday trends suggest firm support on dips to the low 1.31 area and resistance in the low 1.32s. Broader trends remain USD-bearish, however, and the USD may close out the week with another net loss.

Downside momentum may need a ‘refresh’ from a break under 1.3070 (200-Week Moving Average).

GBP/USD: A low close on the week could see losses extend to 1.27 – Scotiabank

EUR/USD: Scope for losses to extend much more should be limited – Scotiabank

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