Canada August retail sales -0.1% vs +0.3% expected

Details of the August Canadian retail sales report

  • Prior was -0.1% (revised to -0.2%)
  • Ex autos 0.0% vs +0.3% expected
  • Prior ex autos -0.1% (revised to -0.2%)

Weak numbers with negative revisions. The CPI report was also a tad soft and USD/CAD is off to the races for the second day.

Yesterday, the BOC revealed they had actively considered cutting rates and that sent USD/CAD sharply higher.

One upbeat sign was from sales at furniture stores (+2.0%) and home furnishing stores (+1.3%). That category is seen as a proxy for home investment and confidence in real estate.

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