CAD: Retail sales in focus – BBH

Research Team at BBH, suggests that Canada reports October retail sales today and if there is a risk, it may lay on the upside of the median 0.6% forecast after a stronger than expected US report. 

Key Quotes

“The Canadian dollar is up about 0.8% this week, as are the other dollar-bloc currencies (and Swedish krona and sterling).  The oil story appears to be trumping the rate differential story for the Canadian dollar.  The US 2-year premium over Canada is widening a couple more basis points today to 42 bp, which is the most since January.  However, the CAD1.3380 offers support for the US dollar.  Resistance is seen near CAD1.3450.”