Loonie Tumbles As Canadian February Retail Sales Unexpectedly Fall

By Tzu-Wen Chen,

THETAKEAWAY: [Canada retail sales unexpectedly decline forfirst time in seven months] > [Decline led by auto] > [CAD weakens againstUSD]

Canadian retail sales unexpectedly declined in February for the first time in seven months on disappointing auto sales, reversing the rebound seen in January after sales stagnated in December. Ottawa-based Statistics Canada reported today that sales fell by 0.2 percent in February, while January’s figures were revised downwards to 0.2 percent from the 0.5 percent originally reported. The median forecast of economists surveyed by Bloomberg News had called for month-on-month growth of 0.1 percent, while sales excluding autos had been projected to rise by 0.6 percent.

The decline in retail sales was led by motor vehicles and parts dealers, which fell by 2.4 percent. Food and beverage stores registered the second straight month of decline, edging down 0.2 percent. Meanwhile, building material and garden equipment sales recorded the largest gain, rising 2.2 percent, while sales at gasoline stations rose by 1.7 percent, reflecting higher gasoline prices.

USD CAD 1-minute Chart: April 24 ,2012

Chart createdusing Strategy Trader – Prepared byTzu-Wen Chen

The Canadian dollar tumbled against the U.S. dollar on the disappointing retail sales figures, falling 19 pips against the greenback in the first few minutes after data release. The loonie continued to lose ground, and at the time of this report, the USDCAD pair was trading at C$0.9918.

--- Written by Tzu-Wen Chen DailyFX Research
DailyFX is the forex news and research arm of FXCM, Inc (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

Original Article: http://www.dailyfx.com/forex/market_alert/2012/04/24/Loonie_Tumbles_As_Canadian_February_Retail_Sales_Unexpectedly_Fall.html

DailyFX is the forex news and research arm of FXCM (NYSE: FXCM), which provides currency trading and brokerage services and is an advertiser on TheStreet websites. Any opinions, news, research, analyses, prices, or other information is provided as general market commentary, and does not constitute investment advice. Dailyfx will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. Currency trading involves significant risk of loss. Individual authors may hold positions in the currencies discussed in the article.

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