As retail spending in Canada is expected to improve in May, the rebound in private consumption is likely to strengthen the outlook for future growth, which could lead the central bank to normalize monetary policy further in the second-half of the year.

Retail spending in the world’s largest economy is expected to increase 1.2% in March following the unexpected rise in the previous month, and the data is likely to stoke increased volatility in the exchange rate as investors weigh the prospects for a sustainable recovery in the U.S.

The New Zealand dollar is likely to face increased volatility over the next 24 hours of trading as economists forecast retail spending to increase 0.2% in February after rising 0.8% in the previous month, and the expansion in household consumption could reinforce an improved outlook for the region as the recovery gathers momentum.

The British Pound extended the overnight advance to reach a high of 1.5000 as the economic docket reinforced an improved outlook for the U.K., but the lack of momentum to cross back above the 20-Day SMA (1.5080) may keep the GBP/USD within the narrow range carried over from the previous month as investors weigh the prospects for future policy.

Retail spending in the U.S. unexpectedly increased 0.3% in February after advancing a revised 0.1% in the previous month, while sales less autos jumped 0.8% during the same period to top forecasts for a 0.1% rise.