The most troubling parts of the Canadian retail sales report are the housing proxies.
The ‘building material and garden equipment and supplies dealers’ line fell 1.4% in the month and is down 0.9% y/y. Furniture sales were also weak.
USD/CAD has moved up to 1.1047, matching the European high. Just beyond is the 55-day moving average at 1.1052, followed by the late-March highs and the 50% Fibonacci at 1.1069.
USDCAD daily
A look at the chart proves the old adage : Gains in bull markets are slow and steady, while the corrections are swift.
