• USD/CAD ticks down after the Canadian Retail Sales data came in line with expectations and the prior release.
• Steady Canadian Retail Sales growth would weigh on BoC's large rate-cut bets.
• Investors await the flash US S&P Global PMI data for November.

The USD/CAD pair surrenders its entire intraday gains and ticks down as the Canadian Retail Sales data grew steadily in September and the US Dollar (USD) gives up a majority of its intraday gains after refreshing a two-year high.

Statistics Canada showed that Retail Sales, a key measure of consumer spending that drives inflation, rose by 0.4%, in line with estimates for the month. Steady sales were driven by higher spending on food and beverages, while sales receipts at gasoline stations were lower. Steady growth in the consumer spending measure is expected to weigh on market expectations that the Bank of Canada (BoC) will cut interest rates consecutively for the second time by 50 basis points (bps).

Market speculation for BoC outsize interest rate cuts was already diminished slightly after the release of the Consumer Price Index (CPI) data for October, which showed that price pressures accelerated at a faster-than-expected pace.