Canadian Retail Sales

As the Canadian Dollar is under pressure and has broken down below some key support level there could be more bad news coming out this week. Retail sales are expected to show a contraction of 0.2% in October month-over-month. This would follow a solid increase of 0.8% reported in September. The two month average would print a 0.3% increase which is not bad and could prevent a more violent sell-off. Should retail sales contract more than expected be ready for some volatility.

I think the Canadian Dollar is oversold and suffered as a result of the weak oil price. There have been several better than expected reports, but the Canadian Dollar was unable to mount a rally. I prefer the Canadian Dollar over the US Dollar, but the markets disagree with me right now quite a bit :). Let’s see if we can get a strong finish to the trading week!