Canadian retail sales volume drops slightly in August

Canada’s retail sales dropped a bit in August, falling 0.3 percent sequentially. Removing the impact of prices, the performance was weaker, as volumes dropped 0.7 percent. In spite of strong sales growth among motor vehicle and parts dealers, a 2.5 percent decline in sales at food and beverage stores more than counter the gain. Across the remaining categories, Statistics Canada noted softness at stores traditionally associated with housing.

Province wise, sales dropped throughout most provinces, with the largest drop by value recorded in Quebec. But Ontario recorded a modest gain, as did P.E.I., Nova Scotia, and New Brunswick.

The upcoming interest rate decision next week and Monetary Policy Report would be closely monitored given the recent economic developments, noted TD Economics in a research report. With the Bank of Canada in ‘intense data dependent mode’, the interpretation of recent weakness in the data and the effect of the week’s ‘B-20’ guidelines for mortgage underwriting would be important in assessing the possible path forward for interest rates, added TD Economics.

At 20:00 GMT the FxWirePro's Hourly Strength Index of Canadian Dollar was slightly bearish at -51.3675, while the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 134.022. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest