North American consumers are starting to reevaluate their short term futures, retail sales in the U.S. fell as expected, but the drop exceeded even the worst estimate. Perhaps last year’s lockdowns, mask mandates, loss of employment income is still etched in their minds. The overall general nervousness is starting to appear. There is no government assistance beyond the next couple of months on both sides of the 49th and this may be weighing on a lot of peoples’ plans.
The Housing market index gave little evidence of an upbeat housing situation, lower lumber prices have yet to be fully passed on to builders and it’s a wait and see when this happens.
Also, another factor is that inflation has not gone away or show signs of going away, central banks are feeling the pressure that it may be time to rein in on low interest rates.
The Canadian dollar is weaker to the USD, not only is it effected by less lumber exports, oil prices are down 1% so far this morning. Like we said, the CAD will trade on the weaker side for the short term.
Currently* Close Range
USDCAD 1.2620 1.2572 1.2567-1.2633
EURCAD 1.4784 1.4799 1.4780-1.4866
GBPCAD 1.7340 1.7400 1.7335-1.7431