CANADA CPI & RETAIL SALES Both weaker than expected. CAN CPI Softer than expected, slowing to 1.4% y/y in March from 1.6%, with the BoCs annual core CPI down to 1.7% from 2.1% vs exp 1.9%. Canada Mar retail +0.5% from +0.7% vs. expected 1.1%, while core sales from -0.1%. USDCAD eyes 1.0070, but further gains may be seen in EURCAD towards 1.3410. USD remains bid after CNBC learned that a growing number of FOMC members favours the sale of assets by Q3/Q4. This means the Fed is ready to start withdrawing liquidity ahead of the US mid-term election, which may be an added factor in triggering market jitters. Weaker than exp UK Q1 GDP also weighs on GBP and boosts EURGBP off its 100-week MA towards 0.690s. MORE USD GAINS AHEAD.