Two key Canadian data points both miss expectations data. Canada retail sales slipped 0.1% in July, contrary to expectations (median +0.2%) and following the 0.1% dip in June. The ex-autos sales aggregate dipped 0.1% in July, also not as expected (median +0.4%) after the revised 0.6% tumble in June (was -0.8%). Excluding gasoline prices, retail sales values grew 0.2% in July. Moreover, falling prices in general were a key driver during July for total sales values, as total sales volumes expanded 0.3% m/m in July. The improvement in actual sales (as opposed to the dollar value of those sales) is consistent with a projection for a 0.2% m/m gain in July GDP after the 0.6% surge in June. The separate real Q3 GDP measure is on track for a 3.2% rebound following the 1.6% drop in Q2.
Also Canadian CPI slowed to a 1.1% y/y rate in August, which was much slower than anticipated (median +1.4%) after expanding at a 1.3% clip in July. Total CPI fell 0.2% m/m in August (median +0.1%) following the matching 0.2% drop in July. The Bank of Canada’s core CPI measure slowed to a 1.8% y/y pace in August (median +2.1%) from the 2.1% y/y growth rate in July. The core CPI was flat in August, matching the flat reading in July.
USDCAD spiked up to 1.3140 highs from 1.3035 following the cooler Canada CPI and softer retail sales outcome. Firmed oil prices weighed on the pairing, though the weaker data more than unwound those CAD gains.
Chief Market Analyst
If you wish to get the latest forex brokers news,you can visit our Top Forex Brokers official website:
About Janne Muta, HotForex’s Chief Market Analyst
Janne Muta is a seasoned industry professional with over 16 years experience in the global markets. Originally from Finland, Janne has worked for institutions in both Helsinki and London as an institutional fund manager, global market analyst and FX educator.
Traders and fund managers from around the world have benefited greatly from Janne’s technical analysis methods. The indicators and price action based trading models he has developed, have, after rigorous testing, proven to be invaluable in identifying high probability trades.
“My mission is to help you to become a confident and successful trader”
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.