FX Action: USD-CAD has seen some choppy price action
FX Action: USD-CAD has seen some choppy price action over the last day, driving sharply to a one-month low at 1.3274 before rebounding equally sharply back to the mid 1.3300s. A combo of higher oil prices and warmer than expected Canadian CPI data sparked buying in Canadian dollars. The Canadian focus now shifts to today's release of retail sales, which analysts expect to slip 0.1% m/m in February after a 0.3% fall in January. Analysts project retail sales ex-autos -0.4% from +0.1% in the month prior. Harsher than usual winter weather is expected to weigh on sales in February, although firmer gasoline prices could provide a partial offsets. Overall, assuming risk appetite holds up in global markets, the directional bias in USD-CAD should be to the downside. Resistance is marked at 1.3402-05. Note that Canadian markets will close early Thursday ahead of the Good Friday holiday (fixed income at around 13:30 ET), with both stocks and bonds shuttered Friday.