Canadian Dollar Outlook: Retail Sales Data May Fuel USD/CAD Downtrend
Article summary
Canadian Dollar Outlook: Retail Sales Data May Fuel USD/CAD Downtrend 2020-10-21 07:00:00 Canadian Dollar, USD/CAD, CAD/JPY, Bank of Canada, Inflation – Talking Points: Progress in US fiscal aid talks appeared to firm market sentiment during APAC trade. Advertisement Asia-Pacific Recap The haven-associated US Dollar and Japanese Yen continued to lose ground against their major counterparts during the Asian trading session, as progress in US fiscal stimulus negotiations appeared to firm market sentiment. […] Market reaction chart created using TradingView Retail Sales Data to Dictate CAD Upcoming retail sales and inflation data may dictate the near-term outlook for the Canadian Dollar, after the Bank of Canada’s Business Outlook Survey showed that “business sentiment has improved but remains weak across all regions [and] businesses expect the pace of the recovery in their sales to slow”. […] This could indicate that Canadian policymakers are becoming more sensitive to the potential impact of alternative monetary policy measures and may hesitate to ease further in the absence of a notable deterioration in economic data. With that in mind, the Canadian Dollar may continue to outperform the haven-associated Japanese Yen and US Dollar, if upcoming economic data encourages the Bank of Canada to retains it wait-and-see approach to monetary policy .
