Canada: Focus on retail sales – BBH

Analysts at BBH point out that Canada reports December retail sales and is going to be a key economic release for today’s session.  

Key Quotes

“The headline is expected to have been restrained by weaker auto sales, without which retail sales may have risen about 0.3% after the heady 1.6% rise November.  The market continues to discount a little less than a 50% chance of a hike in April.  The US dollar has risen from CAD1.2550 to CAD1.2710 in the past five sessions.  It overshot our retracement target near CAD1.2665, but has come back offered.  A move back below the CAD1.2660 area may suggest a near-term top is in place.”