Canadian Retail Sales Beat Estimates, Loonie Back Into Profits - 25.9.2012
Core Retail Sales in Canada which excludes volatile sector of autos rose by 0.4 per cent in July, compared with 0.4 per cent drop in June according to the Statistics of Canada. Additionally the Retail Sales including autos increased by 0.7% in July, up from a revised 0.3 per cent decrease in June. Economists were expecting Retail Sales ex autos to increase by 0.2 per cent and Retail Sales including autos to rise by 0.1 per cent in July but the figures were surprisingly stronger.
Furthermore as the Statcan reported, the Retail Sales rose in 8 of 11 subsectors representing 72 per cent of the whole retail trade and the leading subsector was autos. The Loonie gained ground immediately after the release against the US dollar. The Canadian was well supported by better than expected news and the USDCAD dropped from 0.9808 to 0.9763.