Today’s Canadian Dollar (CAD) lowered against the Japanese Yen (JPY) due to the retail sales news published a few days ago with a decreasing status of -3.4 percent relative to last month’s record.
Statistics Canada published monthly statistics of Retail Sales, which indicates all products sold by retailers based on a sample of retail stores of all styles and sizes. Retail sales are one of the key tools while calculating the country’s performance, leading to lower readings pointing to the weak economy as well as the devalued dollar.
It shows the retail sector’s performance over the short and mid-term. Positive economic growth predicts bullish trends for the CAD, while negative or bearish reading is low.
As of writing this article, the CADJPY is at 80.17, with the range of support rates on the back of the price to lift it and take it to the optimum level (as shown in the image below).
Moreover, the expectation of strengthening CADJPY may get more reliable because of the Retail Trade news of Japan.
The Ministry of Economy, Trade, and Industry plan to release the Retail Trade on Thursday, 25 February 2021. According to economists’ prediction, Retail Trade registered a reading of -2.6%, as compared to the month before reading of -0.2%.
The Retail Trade records the aggregate sales distributed to the general public, for household or personal use, through a business place (usually a store) where the key operation is the selling of goods and related services. A main significant indicator for the Japanese economy is consumer spending.
The selling strategy is quite helpful for the traders of the short term, whereas the long-term traders should hold it because the pair may lead in a forwarding direction ahead.