Watching CAD after yesterday's retail sales print
The Canadian retail sales numbers yesterday came in softer than expected, which definitely adds another layer to the BoC's upcoming decisions. Was anticipating some of that, but the reaction across the board for CAD was interesting. I'm keeping a close eye on $NZDCAD, currently at 0.82304, wondering if this weakness has legs, especially if we see any further shifts in commodity prices. The day range 0.82165–0.82454 suggests it's trying to hold ground, but the longer-term outlook might be shifting.
Also curious if anyone is re-evaluating their short CAD plays, or if this is just a minor blip before a potential recovery. I've got $USDMXN at 17.3391 on my watchlist too, mainly as a proxy for broader USD strength, and how that might impact other CAD crosses.
Soft retail sales are certainly a factor for the BoC, but it's hard to tell if this is more than just a blip. Commodity prices always complicate CAD moves, so that's definitely the variable to watch on your NZDCAD trade.