Canada: No surprise in retail sales - TDS

Analysts at TD Securities note that Canada’s June retail sales were broadly in line with consensus at -0.2%, with ex-auto sales down 0.1% m/m.

Key Quotes

“Sales were 0.3% lower on a volumes basis which left our tracking for Q2 GDP unchanged at 3.5% after upward revisions to May.”

“This report has limited implications for the Bank of Canada ahead of next week's more consequential GDP data. While that report will be released in the BoC's blackout period, we will be watching Governor Poloz's appearance at Jackson Hole on Saturday for any hints on near-term tightening.”

“FX: CAD was little bothered with the retail print and focus shifts to Poloz's Jackson Hole appearance this weekend. Unless he signals otherwise, we continue to prefer CAD weakness on the crosses.”