Market Focus

On Friday, March 23, 2018, it is worth focusing on data on the retail sales index, retail sales and the consumer price index of Canada. The base retail sales index is a measure of all sold goods of different types of retail trade except auto. These indicators are important indicators of consumer spending and the pace of economic development. The basic index of consumer prices reflects the change in the price of goods and services from the consumer’s point of view. This indicator is a key indicator of inflation in Canada.

• According to the forecast, the base retail sales index in February will change by 0.1%, against the decline in January at the level of -1.8%.
• The change in the volume of retail sales in February will be 0.1%, against the decline in the previous period at the level of -0.8%.
• The basic index of consumer prices kept growth in January at the level of 0.5%. On an annualized basis, the growth rate was 1.4%, exceeding the previous value of 1.2%.
• The consumer price index will grow by 0.3% in February, which is lower than the previous value at the level of 0.7%. On an annualized basis, the growth of the indicator will slow to 1.6%, against the previous value of 1.7%.

The release of data within the forecast can provide some support for the Canadian currency. In case of exceeding all previous values, one should expect the Canadian dollar to strengthen within 40-50 points against competitors.

Alexander Sivtsov