USD/CAD Continues the Downtrend, As Canadian Retail Sales Remain Impressive
Canadian retail sales posed another strong month in March
Skerdian Meta•Friday, May 21, 2021•2 min read
[[USD/CAD-sponsored]]
USD/CAD has been on a bearish trend for more than a year, losing more than 26 cents from top to bottom. The USD decline, coupled with increasing Oil prices have been keeping this pair bearish, with retraces higher being very weak and short-lived.
We have been selling the retraces up, mainly against moving averages. Earlier today we saw an attempt for another retrace up, but that was quite weak, ending at the 20 SMA (gray) and the bearish trend resumed again.
USD/CAD
The retail sales report for March from Canada was positive again, showing that this year the situation is much better, despite the restrictions in the country. So, the decline continues here and we will try to sell retraces higher whenever we see one.
Canada March 2021 Retail Sales Report
- March retail sales +3.6% vs +2.3% expected
- February sales were +4.8% (revised to 5.8%)
- Estimates ranged from +2.3% to +3.6%
- Statistics Canada advance estimate for March was +2.3%
- Core retail sales ex autos +4.3% vs +2.3% expected
- February core sales were 4.8% (revised to 5.6%)
- Sales up in 10 of 11 sub-sectors
- April advance estimate m/m -5.1% (based on 46% of responses)
- Sales rose 1.8% in Q1
- Building material and garden equipment and supplies dealers +19.8% due to better spring weather
- Clothing and accessories +23.6%
- Food and beverage stores -1.3% led by grocery stores
- Full report
April was locked down heavily in much of Canada and continues to be so, but retail sales were curbed. It’s tough to guess what was expected in the month but -5.1% isn’t that bad considering the severity of the lockdown.
Expect that March will be the high water mark at least until June. It’s a tough time to trade this report because you don’t know what represents unanticipated demand and what is lockdown-related. Notably, clothing sales have been extremely strong in a number of countries after being extremely depressed throughout the pandemic. There’s an investing idea there.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
ABOUT THE AUTHOR
See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments
Subscribe
Login
Please login to comment
0 Comments
Oldest
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals