USD/CAD remains on the defensive below 1.4300, Canadian CPI data in focus

USD/CAD softens to around 1.4290 in Monday’s late American session. 

US Retail Sales rose softer than expected in February, weighing on the US Dollar.

Crude Oil prices edge higher due to geopolitical risks, supporting the commodity-linked CAD. 

The USD/CAD pair remains on the defensive near 1.4290 during the late American session on Monday. The US dollar (USD) weakens as fears of economic slowdown from US President Donald Trump's protectionist trade policies keep investors cautious on the Greenback. Canada’s February Consumer Price Index (CPI) inflation report will be in the spotlight on Tuesday. 

US Retail Sales rose less than expected in February, adding to concerns about a slowdown in consumer spending. Data released by the US Census Bureau on Monday showed that Retail Sales in the United States climbed 0.2% MoM in February versus -1.2% (revised from -0.9%) prior. This figure came in weaker than the market expectation for an increase of 0.7%. On a yearly basis, Retail Sales came in at 3.1%, compared to 3.9% (revised from 4.2%) in January. 


The discouraging US economic data, along with Trump’s tariff threats, has sparked high levels of uncertainty amongst investors. This, in turn, drags the USD lower against the Canadian Dollar (CAD). Investors will keep an eye on the US Building Permits, Housing Starts and Industrial Production data, which are due later on Tuesday. If the reports show a stronger outcome, this could help limit the USD’s losses in the near term. 


A rise in Crude Oil prices amid the rising geopolitical tensions in the Middle East provides some support to the commodity-linked Loonie. It’s worth noting that Canada is the largest oil exporter to the United States (US), and higher crude oil prices tend to have a positive impact on the CAD value.