Briefly made a show back above........>

DOLLAR-CANADA: Briefly made a show back above C$1.2700 but with lack of follow

through drifted to hold in narrow range trade. Canadian Retail Sales are due for

release at the bottom of the hour, analysts at BMO expect Retail Sales to drop

0.5% in December, breaking a three-month winning streak, as auto sales likely

pulled back in the month. Adding to the softness is an anticipated decline in

underlying sales.

- CIBC say November sales have been chewing into holiday shopping that used to

take place in December, something seasonal adjustment hasn't yet fully accounted

for yet. As a result, look for a soft retail print.

- RBC expect nominal retail sales edged 0.1% m/m lower in December. Indications

are auto sales will be little changed in the month, while higher gasoline prices

should boost gas station receipts by ~1%. Excluding these items, nominal "core"

sales should be down ~0.5% m/m.

TD Securities say Retailers should end 2017 on a soft note due to a drag from

autos and a snap of cold winter weather.