​With the Canadian dollar stumbling earlier this week due to a lackluster BOC statement and tone which left CAD bulls no choice but to run for the hills as the bears charged. Today’s data offers one more chance of redemption for the Looney as we see the Core CPI m/m and Core Retail Sales being released. Both of these will give big clues as to the performance of the Canadian economy of late and should the data contradict the dovish tone from the BOC by beating expectations we will more than likely see the CAD firm and the USDCAD retrace from this week highs. However, worse than expected data will see the Cad continue to weaken with the USDCAD making news highs as the Looney continues to struggle.

Today’s key economic data is as follows:

GBP

  • Public Sector Net Borrowing expected at 8.6B

EUR

  • German Buba President Weidmann Speaks
  • EU Economic Summit

CAD

  • Core CPI m/m expected at 0.2%
  • Core Retail Sales expected at 0.4%
  • CPI m/m expected at 0.2%
  • Retail Sales m/m expected at 0.5%