CAD: All eyes on retail sales and inflation data - BBH

Research Team at BBH, suggests that the Canada reports February retail sales and March CPI today.

Key Quotes

“The risk seems to be on the downside for retail sales where the median forecast is for a 08% decline after a 2.1% surge in January. Consumer prices are expected to have moderated, with the headline slipping to 1.2% from 1.4% and the core rate easing to 1.7% from 1.9%. Both reports are likely to be taken in stride by policymakers and investors.

The US dollar recorded a multi-month low just below CAD1.26 at midweek. It has edged higher, reaching CAD1.2760 earlier today. Its performance in North America may be more dependent on the greenback’s overall tone than the Canadian data per se. Initial resistance is seen near CAD1.2800, with support around CAD1.2680.”