EncoreFX’s daily market updates are written by our experienced and professional dealing team.
Canadian Inflation and Retail Sales Miss Expectations; USD/CAD Moves Higher
Published June 22, 2018
Canadian month-on-month inflation data missed expectations with a reading of 0.1 percent versus growth expectations of 0.3 percent; the annualized inflation growth figure for Canada came in at 2.2 percent versus expectations of 2.5 percent.
Canadian month-on-month retail sales also disappointed, with a -0.1 percent decline in sales versus growth expectations of 0.5 percent. Sales were down in 8 of 11 sub sectors; automotive, building material and garden equipment sales led the overall declines. Inclement weather in some parts of Canada during months measured for retail sales is leading investors to believe that this decline in sales could be a seasonal blip.
USD/CAD has shot up to the high 1.3300’s as this round of relatively poor economic data casts doubts on the likelihood of an interest rate hike for Canada on July 11.
The OPEC press conference earlier this morning has not yet offered any substantive decision from the cartel in regards to an agreement to increase oil output; oil prices are recovering this morning as investors wait for an official statement from OPEC leaders, which is likely to come on Saturday.
US Flash Manufacturing and Flash Services purchasing managers indices are set to be released at 9:45 AM EST today; important data of note includes US GDP, US Consumer Confidence and Canadian GDP.