Retail sales hit lowest levels since April
Friday 19 February, 2021
Daily Currency UpdateCAD - Canadian DollarRetail sales in December declined 4.6% in December on the back of the COVID-19 lockdowns. That data didn’t hinder demand for the Canadian dollar. USDCAD fell to 1.26 this morning in favor the CAD. As of right now, Canadian dollars buy more in the US than they did last night. That also goes for EURCAD, which fell to 1.529 this morning.
Key MoversAfter a sharp sell-off in EURUSD on Wednesday, the pair recovered slightly yesterday heading back towards the $1.21 handle. The uptick we saw in the Dollar, following on from the impressive US retail sales figures was short lived. The selloff in the Dollar was supported by the Philadelphia Fed manufacturing index, which beat expectations, however activity slowed from the previous month.The British pound rallied again yesterday, as GBPUSD pushed back towards $1.40 handle and GBPEUR traded comfortably above the €1.15 handle, its highest level in over a year. This is expected to continue as investors bet on the UK unlocking its economy far sooner than the Eurozone and US as the pace of the UK vaccinations continues. The Australian dollar again offered little to excite investors through trade on Thursday, failing to break outside recent ranges and continuing to bounce between 0.7730 and 0.7790 despite improved labor market conditions. Employment data showed employment levels are returning to near pre-pandemic levels, with the unemployment rate falling below 6.5% to 6.4% as another 30,000 jobs were added to the economy. The outlook continues to improve with most industries now reporting almost full employment, with job losses now targeted to those worst hit by the pandemic, namely tourism and entertainment. As the vaccine roll-out begins this month, there is hope forward indicators will show further growth moving into Q2, easing pressure on the RBA to maintain long run QE programs.
- EUR/CAD: 1.529 - 1.537 ▲
- GBP/CAD: 1.766 - 1.774 ▲
- AUD/CAD: 0.984 - 0.992 ▲
- USD/CAD: 1.259 - 1.271 ▲