Canada Retail Sales m/m 02/19/2010

8:30am NY Time Core Retail Sales    Forecast 0.4%    Previous 0.0%
ACTION: USD/CAD        BUY -0.2%         SELL 1.0%

We’ll be looking to trade the Core Retail Sales release and not the headline release today; the core release as a forecast expectation of 0.4% with a previous release at 0.0%.  Core Retail Sales release is a month on month release, and basically it’s a measurement of the activities at the retail level of Canada, excluding most volatile Automobile Sales Components, which makes up about 25% of the Headline or Retail Sales release. A better release generally means more consumer spending, which leads to better economy, thus better for its currency.  And of course the CORE reading provides a far more accurate look of the actual economy as the automotive component could fluctuate per season.

I’m going to be looking for a minimum deviation of 0.6% for this release.  Therefore if we get a -0.2% or worse, it would be negative for the CAD and we’ll be looking to BUY USD/CAD; however, if the opposite is true, or a 1.0% of actual release, I’ll be looking to SELL USD/CAD. 

With the 4Hr support of USD/CAD resting at the 1.0400 area, we could be heading towards the 1.0700 in the next few days as the general off correlation of the CAD with other majors should consolidate shortly, provided that Crude Oil prices stay at the current level.

I’ll be posting my live trade video back in the blog as soon as I can.

Related posts:

1. UK Retail Sales m/m 02/19/2010
2. US Core Retail Sales m/m 11/16/09
3. US Core Retail Sales m/m 10/14/09
4. UK Retail Sales m/m 10/22/09
5. US Core Retail Sales m/m 12/11/09
6. New Zealand Retail Sales m/m 11/11/09
7. US Core Retail Sales m/m 09/15/09
8. UK Retail Sales m/m 01/22/10
9. UK Retail Sales m/m 12/17/09
10. New Zealand Retail Sales m/m 10/12/09