The picture for the Canadian dollar is worsening as it continues to carve out fresh 14-month lows.
The US dollar is up another 33 pips today against the loonie, touching 1.4177
This will be the third consecutive week of gains for the pair and comes with oil prices falling in a post-war rout. WTI crude is down nearly $8 this week and trading back to early-March levels as the crude market prices in a rapid resumption of flows through the Strait of Hormuz. On the domestic side, today’s weak retail sales number highlights a consumer that was hit hard by the spike in gasoline prices.
Overall sales rose 0.5% but it was all driven by gasoline. Excluding gasoline and autos, sales fell 0.7% led by lower sales at food and beverage retailers. The 2.0% decline in that category is an indicator of a squeeze on discretionary spenders.