- Canadian Retail Sales Expected to Decline
- The Fed Chair and 2 FOMC members are scheduled to speak afterward
The Canadian Dollar is trading in a quiet manner ahead of today’s key retail sales data. USD/CAD in Europe is currently trading at 1.3484 (down 0.13%).
Markets brace for soft Canadian retail sales
It is not surprising to see that Canadians are protecting their wallets in this economic climate. In April, inflation increased slightly from 4.3% up to 4.4%. Add in high interest rates and it’s not hard to sympathize with consumers who are struggling with the cost of living.
The April retail sales report may show that things are getting worse – headline retail sales is expected to slow to -1.4%, down from -0.2% in March, and the core rate is expected to fall from -0.7% to -0.8%. Not the best recipe for growth. A decline in today’s report could unnerve investors and send the Canadian dollar lower.
The Bank of Canada is not happy with the slight rise in inflation. However, the core rate has decreased, which is more reliable as a gauge of inflation trends. Next, the BoC will meet on June 7.h Before the meeting there is still one more release of tier-1, which is GDP. If retail sales contracts are for…
