Global macro overview for 21/09/2018
Statistics Canada reports that the Canadian Retail Sales in July are growing by 0.3% in monthly terms to the level of $ 50.9 billion due to higher sales of food, beverages and fuels. Market measurements that exclude the most volatile components of sales turned out to be much more important for the market. In this perspective, the retail sales ratio grows by 0.9% m / m – well above forecasts of 0.6%.
Stronger retail sales are emphasized by sufficiently high CPI. Consumer inflation on an annual basis is growing in August by 2.8% compared to the previous year, which is a value consistent with the market consensus. The change in monthly terms indicates a slight (0.1%) decline in the index.
Let’s now take a look at the USD/CAD technical picture at the H4 time frame. Surprisingly good data and the return of the Canadian minister to the US in order to continue trading talks make bulls buy CAD-related pairs across the board. In the first minutes after the publication of today’s report, USD/CAD tested the region of yesterday’s low, where the USD buyers emphasized their presence. The pair has been in a clear downward trend for quite some time. The nearest technical support is seen at the level of 1.2887.