Retail sales in Canada rose by 0.3%, double the early expectations. They were expected to rise by 0.3% in November after sliding 0.1% in October. Also core retail sales surprised by rising 0.4%. These were predicted to enjoy the same scale of gains, 0.3%, after rising 0.4% in October. Another positive data point came from the upwards revision of the core value for October, up to 0.5%. This means that the climb in November began from higher ground.
The Canadian dollar suffered badly in the past few days. It traded at around 1.1138 towards the publication after already reaching 1.1173. USD/CAD is now sliding to 1.1120. It find sound support at 1.1111, which is 0.90 on CAD/USD.
Here is a 30 minute chart of USD/CAD. Watch how 1.1111 works as support:
The C$ became a very volatile currency. The last trigger for the downfall of the loonie was the dovish rate statement and consequent press conference by BOC governor Stephen Poloz. Low inflation is worrying the Canadian central bank.
At the same time, the US released weekly jobless claims that came out a bit better than expected: 326K instead of 331K expected.
Big resistance appears only at 1.1290, while support is at 1.1125. For more levels, see the Canadian $ forecast.
