Canada's retail sales slowed down in October, according to the latest report published by Statistics Canada, the country’s major statistics office. The slowdown came as a surprise to traders and investors watching the index.
When adjusted for seasonality, October’s retail sales went down by 0,5% down to 43,31 billion CAD over the reporting period. The actual figures failed to come up to expectations since the expert community had expected a 0.2% increase instead of the mentioned 0,5% drop. Still, the turnover decreased as well, which means the the retail sales improved by 0.1% in relative terms.
The mentioned drop is the first one seen over the last 4 moths. In terms of its size, this is the biggest monthly drop since January 2015, Masterforex-V Academy reports. This leads us to believe that amid a wholesale and manufacturing decline, we may well expect the Canadian GDP to see a slowdown over the reporting period.
Meanwhile, inflation growth is still underway. After September’s consumer price drop, consumer prices showed an increase in October. The consumer inflation rate reached 1.1% over the last 12 months. The actual figures matched analyst estimates.
FOREX
Meanwhile, Masterforex-V Academy reports that the Canadian Dollar is still weakening within the scope of a mid-term trend versus the U.S. Dollar, which means that USDCAD is rallying. More specifically, USDCAD is forming a bullish move – wave 3/C of level Daily2.
Key support levels – MF pivot 1.3268 + the bottom of the ascending MF sloping channel
Key resistance levels – the 1.3455 high + 1.3469, 1.3493, 1.3558/72
