CAD sees bump on stronger retail sales
Tuesday 20 December, 2022
Daily Currency UpdateThe Canadian dollar is seeing further improvements heading into the NA session as oil gets above $76 a barrel and Retail sales for showed improvements. Data released this morning showed that retail sales in October were up 1.4%. Although this didn’t meet the headline expectation of 1.5%, the core number was better than expected. Core sales which strip out auto sales were up 1.7% against the expected 1.4%.
Key MoversThe USD made some brief overnight gains after the Bank of Japan (BoJ) surprised markets by tightening monetary policy during the Asian session. The Greenback made short lived gains against every major except the Yen but those gains have trimmed off through European trading. One release this morning showed building permits were lighter than expected at 1.342M versus the forecasted 1.485M, showing that there may be a slowdown in new build activity heading into 2023. The Euro was amongst the currencies that had short term loses after the Bank of Japan (BoJ) release, but it has regained position after a smattering of data from the euro zone showed general improvement. There was also a lift after ECB Board member Nagel made comments that the central bank has a long way to go to controlling inflation. The biggest move in the overnights came from the Japanese Yen after the BoJ showed a more hawkish stance on monetary policy. They left the overnight rate at -0.10% but changed the upper limit on bonds to 0.5% form 0.25%. This is an incentive for Japanese investors to keep money at home so it could have negative impact on global bond markets.
- EUR/CAD: 1.4442 - 1.4516 ▼
- GBP/CAD: 1.6497 - 1.6635 ▼
- AUD/CAD: 0.9045 - 0.9182 ▼
- USD/CAD: 1.3608 - 1.3698 ▼