• Canadian retail sales likely to have rebounded in may

    Source: FxWire Pro - Commentary / 19 Jul 2018 15:23:01   America/New_York

    Canadian retail sales data for the month of May is set to be released this week. According to a TD Economics research report, retail sales are likely to have rebounded by 1.3 percent in May, with motor vehicle sales leading the advance after severe weather led to a sharp decline in April. Therefore, sales, excluding autos, is expected to have recorded a more modest rise of 0.5 percent.

    Motor vehicle sales are not expected to have rebounded entirely from April given a stable deceleration in credit growth, but should however provide a considerable tailwind to the headline print. Gasoline station sales are also expected to have made a positive contribution on higher prices, while volumes are expected to benefit from the return to more favourable weather and driving conditions.

    Outside of these two components, the retail activity is expected to see a moderate growth as the sound labor market and early signs of stabilization in housing permit consumers to loosen their purse strings.

    “Meanwhile, real retail sales should come in near the nominal print owing to the modest increase in consumer prices for May”, added TD Economics.

    At 19:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was neutral at -45.1086, while the FxWirePro's Hourly Strength Index of US Dollar was bullish at 85.6447. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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