Canadian Dollar Higher On Retail Sales
Dean Popplewell | Jul 21, 2017 09:14AM ET
- Canadian inflation slows
- Canadian retail sales soar
Data this morning showed that Canada’s inflation rate in June decelerated for the fourth time in five-months and rose at its slowest pace since the fall of 2015.
Like other G7 nations, Canada continues to deal with the challenge of weak pricing pressure amid improving growth prospects.
Canada’s all-items consumer-price index in June increased +1% y/y, following a +1.3% advance in May. The market was expecting a +1.1% gain.
On a month-over-month basis, CPI in June declined -0.1%.
Lower energy and gasoline prices from a year ago were the main downward contributors on June CPI.
Note: The average rate of annual core inflation, based on three gauges used by the BoC, rose +1.4% in June vs. +1.3% in May.
Retail Sales
Canadian retail sales climbed in May for a third consecutive month, powered by demand for new and used cars.
Ex-autos, retail receipts fell a tad.
The value of retail sales in May rose +0.6% on a seasonally adjusted basis to +C$48.91B. That exceeded market expectations for a +0.3%.
In volume terms, total retail sales rose by a faster +1.1% in May.
The loonie has taken flight and is currently trading atop of the overnight highs at C$1.2554, up +0.35%
The BoC expects household expenditures to remain robust in the near term, supported by job gains and firmer wage growth.
However, consumption is expected to ease as housing activity slows down, and consumers deal with elevated debt loads amid an environment of rising borrowing costs. Governor Poloz hiked rates +25 bps to +0.75% for the first time in seven years this month on an improving economy.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.