CAD: December CPI and November retail sales in focus - BBH

Canada reports December CPI and November retail sales and will garner maximum investors’ attention in today’s session suggests analysts at BBH.  

Key Quotes

“Headline CPI is expected to be flat, but the base effect would lift the year-over-year rate to 1.7% from 1.2%.  Retail sales were likely lifted by auto sales, without which they would be flat.  We suspect the risk is on the downside after November's outsized 1.1% rise (1.4% excluding autos).  The US dollar is advancing against the Canadian dollar for the third consecutive session.  The greenback is snapping a three-week decline against the Loonie.  The CAD1.3380 area is an important retracement target, and surpassing it could spur a move toward CAD1.3460-CAD1.3500 initially.”