Canada Retail Sales

At 8:30 AM EDT, the Canada Retail Sales is due to be released.  The expectation is for a decline of -0.3% for the month.  The number less Autos is expected to come in at 0.0% versuss a gain of 0.4% last month.

The Canada Leading Indicators is also due out.  The expectation for it is for unchanged versus 0.2%

The Canada economy is dependent on exports and also influenced by the price of oil.  With the US slowing the and the price of oil declining the Canadian economy is expected to slow. Yesterday the BOC cut rates by 25 basis points.  This was lower than expected.  However, the USDCAD has continued to move higher (Canadian dollar lower).  The pair has been tracking the midpoint of the move down from the highs which comes in at 1.2624

Canada Retail Sales for June came out at 0.5% for the headline but up 1.4% for the ex auto figure. This was stronger than expectation, but higher price for gas contributed to the gain.   Gas sales were up 4.2% for the month.  Without the gain, sales would have fallen by 0.4%. 

The number was weaker than expected.  For the quarter the retail sales increased by 1.8% due to a strong January.  Clothing and accesory store sales fell 2.6%. Building supplies -0.5%.  Food and Beverage +0.3%.  Autos up 0.4%. 

USDCAD rose off the weaker number - taking a break from the weakness of the pair off the rise in oil prices of late.